Samsung Heavy Industries (SHI) has secured an engineering, procurement and construction (EPC) contract for a new floating LNG production unit worth $1.5 billion, says an article published on marine link website.
Summary
- Samsung Heavy Industries (SHI) has secured a $1.5 billion Engineering, Procurement, and Construction (EPC) contract for a new floating liquefied natural gas (FLNG) production unit.
- The contract is part of a consortium formed by SHI in collaboration with Black & Veatch.
- The Cedar LNG project, situated in Kitimat, British Columbia, Canada, aims to be the first Indigenous majority-owned LNG project globally.
- Cedar LNG has attained major regulatory approvals and signed memorandums of understanding for long-term liquefaction services.
- The project strategically utilizes Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce low-carbon LNG for international markets.
- The Cedar LNG project aligns with the commitment to deliver a reliable and resilient global energy supply, emphasizing a low-carbon, sustainable approach.
Engineering, Procurement, And Construction (EPC) Contract Secured
Samsung Heavy Industries (SHI) has successfully secured a $1.5 billion Engineering, Procurement, and Construction (EPC) contract for a new floating liquefied natural gas (FLNG) production unit. The contract is part of a consortium formed by SHI in collaboration with Black & Veatch. The realization of the contract is contingent on the final investment decision (FID) for the project, currently being developed by a North American client.
Consortium Details
SHI and Black & Veatch have joined forces to deliver the FLNG unit. Although the client’s identity remains undisclosed by SHI, it is strongly speculated to be the Haisla Nation and Pembina Pipeline Corporation (Pembina), partners in the Cedar LNG project. Pembina has confirmed the order with the SHI-Black & Veatch consortium.
Cedar LNG Project And Client’s Perspective
The Cedar LNG project, situated in Kitimat, British Columbia, Canada, falls within the traditional territory of the Haisla Nation. This marks a historic milestone for Cedar LNG, aiming to be the first Indigenous majority-owned LNG project globally. The CEO of Cedar LNG, Doug Arnell, emphasizes the significance of this achievement, stating that it will usher in a new era of low-carbon, sustainable LNG production.
Project Milestones And Timeline
Cedar LNG has attained major regulatory approvals and signed memorandums of understanding for long-term liquefaction services, positioning the project at an advanced stage of planning and development. With an expected FID by the end of the first quarter of 2024, onshore construction could commence as early as the second quarter of the same year. The FLNG delivery and substantial completion are anticipated in 2028.
Strategic Positioning And Operational Details
The project strategically utilizes Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce low-carbon LNG for international markets. Natural gas will be supplied to Cedar LNG through an 8-kilometer-long pipeline connected to the Coastal GasLink pipeline.
The facility will convert natural gas to LNG, with shipments departing every 7 to 10 days or up to 50 times a year, destined for customers in the Asia Pacific. The project’s construction is expected to peak with around 500 workers, with approximately 100 personnel operating the facility full-time during its operational phase.
Outlook And Environmental Focus
The Cedar LNG project aligns with the commitment to deliver a reliable and resilient global energy supply, emphasizing a low-carbon, sustainable approach. The collaborative efforts of SHI, Black & Veatch, and Cedar LNG position the project as a pioneering venture in the LNG sector with a strong environmental profile.
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Source: marine link
