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kitimat LNG
October 5, 2022

LNG Canada ramps up construction at Kitimat natural gas facility

LNG Canada is ramping up construction at its Kitimat liquefied natural gas (LNG) terminal with the workforce expected to peak at 7,500 people next year, newly-minted CEO Jason Klein said at a news conference and tour of the site on Sept. 28.

With the first phase of the LNG project now 70 per cent complete and the Coastal GasLink (CGL) pipeline 75 per cent complete, Klein, who was appointed CEO in April, said there is plenty of reason to be optimistic despite pandemic setbacks and cost of the pipeline doubling.

“The pipeline has had almost a 100 per cent cost overrun,” Klein said. “That’s not our experience here.

“We had contingencies to manage uncertainties… Clearly the cost overrun on CGL was not welcome news. We now have a new agreement in place.”

Klein showed off significant progress and LNG Canada construction manager Vince Kenny said the work is “pretty much on track with where we want to be.”

Last time reporters were on site three years ago the company was about to commence concrete foundations, and worker accommodations were just being constructed. Now they are focused on “building up,” Klein said.

Once complete, the terminal for the liquefaction, storage, and loading of liquefied natural gas will export LNG produced by the project’s partners in the Montney Formation gas fields near Dawson Creek.

Without giving a date as to when the project will be complete and ready to start exporting natural gas, primarily to Asian markets, Klein said phase 1 is on track to be operational mid-decade.

Keep reading on vernonmorningstar.com


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