Kwispaa LNG Project Making Progress

Representatives from Steelhead LNG, Huu-ay-aht First Nations, Hyundai Heavy Industries and the B.C. Provincial government at Gastech 2018 in Barcelona, Spain. (CNW Group/Steelhead LNG)

The Kwispaa LNG Project, a proposed Canadian liquefied natural gas (LNG) export facility located at Sarita Bay on Vancouver Island, B.C. on land owned by the Huu-ay-aht First Nations, has moved a step closer to reality as as Kwispaa LNG signed a contract with Hyundai Heavy Industries for the Front-End Engineering and Design (FEED) of two At-Shore LNG hulls.

In a deal signed at the Gastech Conference in Barcelona, representatives from Steelhead LNG (project managers), Huu-ay-aht First Nations, and Hyundai Heavy Industries’ Shipbuilding Division formalized the contract for the design of two At-Shore LNG hulls as part of phase one of the 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 m³ of internal LNG storage.

This 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.

EPC contractor tenderers include:

• Black & Veatch / Samsung Heavy Industries / PCL Industrial Management Inc.;
• CB&I (McDermott)/ Offshore Oil Engineering Co., Ltd. (COOEC); and
• TechnipFMC.

All FEED work is expected to commence in early 2019.

“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,” said Steelhead LNG CEO Nigel Kuzemko in a media 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 award of this 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 At-Shore LNG hulls and allows for fair price adjustments for certain defined parameters that could change throughout the FEED process.

“As a global leader in the ship-building industry, we are tremendously pleased to be partnering with Steelhead LNG for the design of the At-Shore LNG hulls for the Kwispaa LNG Project,” stated Hyundai Heavy Industries. “This agreement is a reflection of our world-leading technical and manufacturing capabilities, and we look forward to proceeding into FEED for this important project.”