Three contractors have been shortlisted for a critical engineering contract with a challenging US$5.5 billion liquefied natural gas project in eastern Canada.

St John’s-based LNG Newfoundland & Labrador (LNG NL) unveiled its innovative liquefaction scheme in September, in what is understood to be a serious attempt to monetise some 8 trillion cubic feet of long-stranded gas resources offshore Newfoundland.

Since announcing the original plan, the cost of the planned project has been cut from an initial estimate of US$10 billion, with McDermott recently completing feasibility studies in two months ago, aided by Worley-owned IntecSea and local player C-Core.