LNG Canada Announces Nearly A Billion Dollars in Contracts, Subcontracts So Far

John Crawford
01/22/2019

LNG Canada says it has already approved over 937-million dollars in contracts and subcontracts, in the first three months of the construction phase of its Kitimat export project.

In a news release issued Monday, the company announced the total includes 175-million dollars to local First Nations businesses.

During the month of October 2018 -- the first month in the construction phase of the project ---  LNG Canada says 249 workers from the local area, including First Nations, were employed by the company or one of its contractors.
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It also says First Nations have benefited from about 620-million in contracts awarded on the associated Coastal GasLink pipeline project.

That project has been highly controversial, due to ongoing protests by Wet'suwet'en Hereditary Chiefs, who say the company has not received their consent to construct it within their territories.

LNG Canada says the export terminal and the pipeline project will employ an estimated 10,000 Canadian workers by the end of construction.
 
=== NEWS RELEASE ===
 

LNG Canada approves $937 million in contracts and subcontracts to First Nations and Canadian businesses

 

January 21, 2019, Vancouver – Today, LNG Canada announces the value of contracts and subcontracts approved as of December 2018, following the first three months of the construction phase of the large-scale LNG export project near Kitimat, British Columbia.


LNG Canada has thus far approved over $937 million (CAD) in contracts and subcontracts with First Nations enterprises and other businesses across Canada. This includes $175 million (CAD) to local First Nations businesses and, with the addition of contracts awarded to local Kitimat area businesses, including First Nations businesses, that total increases to $330 million (CAD) and $530 million (CAD) with the addition of BC businesses outside the local area.


The economic benefits of the project extend far beyond British Columbia, with nearly $400 million (CAD) in contracts and subcontracts approved for businesses across Canada. As the project progresses, more contracts will be awarded to benefit Canadian communities. 

 

“What these contracts and subcontracts represent, is tremendous opportunity for individuals to find employment on the LNG Canada project through our contractors and subcontractors,” says Susannah Pierce, LNG Canada’s Director External Relations. “For First Nations communities, it is delivering on the opportunities we have committed to that will assist the Nations address issues of poverty, unemployment and skills development. For local communities, it is the opportunity for young people to find employment that allows them to remain living in the North.”


During the month of October 2018, the first month in the construction phase of the project, 249 workers from the local area, including First Nations, were employed by LNG Canada or one of its contractors.


By the end of construction, LNG Canada and the Coastal GasLink pipeline project that is needed to transport natural gas from northeastern B.C. to the LNG export facility near Kitimat, expect to employ approximately 10,000 Canadian workers. Coastal GasLink had earlier announced the award of $620 million in contracts to First Nations, with an additional $400 million to be awarded during the remainder of construction.

 

About LNG Canada 

The LNG Canada joint venture is building a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada, which will initially consist of two LNG processing units, referred to as “trains.” 

LNG Canada is a joint venture comprised of Royal Dutch Shell plc, through its affiliate Shell Canada Energy (40%); PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25%); PetroChina Company Limited, through its subsidiary PetroChina Canada Limited (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15%); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5%). It is operated through LNG Canada Development Inc.

 

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