Hyundai Heavy Industries awarded FEED contract for Steelhead LNG project

The Kwispaa LNG Project at Sarita Bay on Vancouver Island achieved another significant milestone in its development this week as Kwispaa LNG signed a contract with Hyundai Heavy Industries for the front-end engineering and design (FEED) of two proprietary At-Shore LNG hulls.

The award of the FEED contract is the start of the process leading to construction of two At-Shore LNG hulls at a total price of US$500 million. The contract secures the price for the future construction of the hulls and allows for fair price adjustments for certain defined parameters that could change throughout the FEED process.

article continues below

The signing follows the recent invitation to tender to shortlisted EPC (engineering, procurement, and construction) contractors for the FEED work on the At-Shore LNG topsides, marine facilities, pre-treatment, and balance of onshore plant facilities.

All FEED work is expected to begin in early 2019.

Representatives from Steelhead LNG, Huu-ay-aht First Nations, and Hyundai Heavy Industries’ shipbuilding division attending the Gastech conference in Barcelona, Spain, formalized the contract for the design of the two hulls as part of the first phase of the Kwispaa LNG Project.

Each hull is expected to measure 340 metres in length and 60 metres wide and feature five individual tanks that provide approximately 280,000 cubic metres of internal LNG storage.

 “This agreement with Hyundai Heavy Industries for two At-Shore LNG hulls again demonstrates the technological innovation and creative solutions that we are developing as part of the Kwispaa LNG Project to offer Asia-Pacific buyers with cleaner and competitively priced LNG from Canada,” Nigel Kuzemko, Steelhead LNG chief executive officer, said in a release.

“Our goal is to help meet the world’s rising demand for LNG and reduce worldwide greenhouse gas emissions. At the same time, with our co-management partners, Huu-ay-aht First Nations, we are committed to working with all levels of government to realize the tremendous potential benefits the Kwispaa LNG Project can provide to local communities, British Columbia, and Canada.”

The Kwispaa LNG Project is a proposed LNG export facility on land owned by the Huu-ay-aht First Nations. The 475-hectare site provides natural deep water and is a short distance to open ocean for efficient access to market.

With a final investment decision anticipated in 2020, the first phase of the project is expected to be operational in 2024, and will provide capacity of approximately 12 mtpa (1.9 bcf/d) with the ability to expand to 24 mtpa in the future.

© Copyright 2018 Alaska Highway News

Read more from the Daily Oil Bulletin

Comments

NOTE: To post a comment you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Google+ You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Alaska Highway News welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus
Sign Up for our Newsletter!

Popular News

Lowest Gas Prices in Chetwynd, Dawson Creek, Fort Nelson, Fort St John, Tumbler Ridge
British Columbia Gas Prices provided by GasBuddy.com

Community Event Calendar


Find out what's happening in your community and submit your own local events.