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KBR to proceed with Woodfibre FEED

US engineering player to continue work on British Columbia's first LNG export facility

US contractor KBR is moving forward with front-end engineering design (FEED) work on Pacific Oil & Gas’ Woodfibre liquefied natural gas project in Western Canada.

The engineering player said on Monday that it will proceed with the second phase of the contract it won earlier this year to perform multi-phased services for the LNG export facility, which is located near Vancouver, British Columbia.

KBR said it “successfully completed the first phase, focused on cost optimisation” for the 2.1 million-tonnes-per-annum project.

The company will now provide comprehensive FEED services for the facility from its operating centres in Houston in the US and Edmonton in Canada, culminating in a lump-sum turnkey price for an engineering, procurement and construction (EPC) contract.

The value of the multi-phased contract was not disclosed, but its second phase will be booked into backlog of unfilled orders for KBR's engineering and construction business segment the third quarter of the year.

The Woodfibre LNG export project, owned by Singapore-based Pacific Oil & Gas, was given federal environmental approval in March. Pending the receipt of other permits and approvals, including regulatory authorisation from Fisheries & Oceans and Transport Canada, the Woodfibre project is targeted to be operational by 2020.

"KBR has been a valued contributor to the Woodfibre LNG project as work continues to ensure the right elements are in place for what could be British Columbia's first LNG export facility," Woodfibre LNG’s country manager Byng Giraud said. 

"This award reinforces KBR's position in British Columbia as well as our strategic commitment to developing fit-for-purpose LNG facilities for our customers,” president of KBR's engineering & construction (E&C) Americas business, Farhan Mujib added.