Fluor Energy and Chemicals group president Jim Brittain, LNG Canada CEO Andy Calitz and JGC Corporation chairman and CEO Masayuki Sato at the April 2018 announcement of the awarding of the contract to JGC Fluor. (Photo supplied)

JGC Fluor gets go-ahead to start construction on LNG Canada

Notice to Proceed issued on Tuesday, October 30

LNG Canada this week gave joint venture partners Fluor and JGC the go-ahead to proceed with the construction of the $40 billion liquefaction plant in Kitimat.

LNG Canada spokesperson Susannah Pierce said Engineering, Procurement and Construction (EPC) contractor JGC Fluor was handed a Notice to Proceed (NTP) on Tuesday, October 30.

“The NTP is considered standard contracting practice and provides permission to the contractor to begin work subject to the conditions of the contract between the two parties,” said Pierce. “It is a formal start to the work to complete design and move into construction.”

Texas-based Fluor and Japanese construction company JGC were selected in April 2018 as the joint venture contractor to build the $40-billion plant in Kitimat.

READ MORE: FLUOR JGC named lead contractor

Fluor-JGC won the bid to construct the plant ahead of their three rivals, TechnipFMC and KBR Inc., Bechtel Canada and Chiyoda Canada, and Saipem SpA and Chicago Bridge & Iron Co. BV.

The joint venture of JGC and Fluor has significant experience in Canada, combined with extensive LNG and mega project experience, and will be responsible for directly hiring the majority of the thousands of skilled workers required during the five-year construction period.

“The commitments LNG Canada has made to ensure the project hires locally and within B.C., prior to hiring from the rest of Canada, will be executed by the Engineering Procurement and Construction (EPC) contractor,” said Pierce.

“LNG Canada’s commitment to some positions being made available for apprentices – open equally to women and men – will also be delivered by the EPC contractor.”

Notice to Proceed is only issued once a positive Final Investment Decision is announced. The NTP authorizes JGC Fluor to go ahead with construction and allows contract payments to begin.

READ MORE: LNG Canada announces positive Final Investment Decision

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