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Hyundai Heavy Industries awarded FEED contract for Steelhead LNG project

Steelhead LNG project,Hyundai Heavy Industries
Representatives from Steelhead LNG, Huu-ay-aht First Nations, Hyundai Heavy Industries and the B.C. Provincial government at Gastech 2018 in Barcelona, Spain. Supplied Photo

The Kwispaa LNG Project at Sarita Bay on Vancouver Island achieved another significant milestone in its development this week as Kwispaa LNG signed a contract with Hyundai Heavy Industries for the front-end engineering and design (FEED) of two proprietary At-Shore LNG hulls.

The award of the FEED contract is the start of the process leading to construction of two At-Shore LNG hulls at a total price of US$500 million. The contract secures the price for the future construction of the hulls and allows for fair price adjustments for certain defined parameters that could change throughout the FEED process.

The signing follows the recent invitation to tender to shortlisted EPC (engineering, procurement, and construction) contractors for the FEED work on the At-Shore LNG topsides, marine facilities, pre-treatment, and balance of onshore plant facilities.

All FEED work is expected to begin in early 2019.

Representatives from Steelhead LNG, Huu-ay-aht First Nations, and Hyundai Heavy Industries’ shipbuilding division attending the Gastech conference in Barcelona, Spain, formalized the contract for the design of the two hulls as part of the first phase of the Kwispaa LNG Project.

Each hull is expected to measure 340 metres in length and 60 metres wide and feature five individual tanks that provide approximately 280,000 cubic metres of internal LNG storage.

“This agreement with Hyundai Heavy Industries for two At-Shore LNG hulls again demonstrates the technological innovation and creative solutions that we are developing as part of the Kwispaa LNG Project to offer Asia-Pacific buyers with cleaner and competitively priced LNG from Canada,” Nigel Kuzemko, Steelhead LNG chief executive officer, said in a release.

“Our goal is to help meet the world’s rising demand for LNG and reduce worldwide greenhouse gas emissions. At the same time, with our co-management partners, Huu-ay-aht First Nations, we are committed to working with all levels of government to realize the tremendous potential benefits the Kwispaa LNG Project can provide to local communities, British Columbia, and Canada.”

The Kwispaa LNG Project is a proposed LNG export facility on land owned by the Huu-ay-aht First Nations. The 475-hectare site provides natural deep water and is a short distance to open ocean for efficient access to market.

With a final investment decision anticipated in 2020, the first phase of the project is expected to be operational in 2024, and will provide capacity of approximately 12 mtpa (1.9 bcf/d) with the ability to expand to 24 mtpa in the future.the

The Origianl Posted by Daily Oil Bulletin/Alaska Highway News