LNG Canada Accelerates Construction of Kitimat Natural Gas Facility – Coast Mountain News
LNG Canada is ramping up construction of its Kitimat liquefied natural gas (LNG) terminal, with the workforce expected to peak at 7,500 next year, new CEO Jason Klein told a news conference and of a site visit on 28 September.
With the first phase of the LNG project now 70% complete and the Coastal GasLink (CGL) pipeline 75% complete, Klein, who was named CEO in April, said there were plenty of reasons for optimism despite the setbacks of the pandemic and the cost of the doubling pipeline.
“The pipeline had a nearly 100% cost overrun,” Klein said. “That’s not our experience here.
“We had contingencies to manage the uncertainties… Obviously, the cost overrun on CGL was not good news. We now have a new agreement in place.
Klein showed significant progress and LNG Canada’s construction manager Vince Kenny said the work was “about where we want to be”.
When reporters were last on site three years ago, the company was about to begin concrete foundations and worker accommodation had just been built. Now they’re focused on “building,” Klein said.
When completed, the liquefied natural gas liquefaction, storage and loading terminal will export LNG produced by project 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 begin exporting natural gas, primarily to Asian markets, Klein said Phase 1 is on track to be operational by mid-decade.
The company also did not give a start date for phase 2 of the project, which would double LNG production.
Klein said he is not releasing the budget, and LNG Canada has neither confirmed nor denied estimated project costs of between $17 billion and $18 billion for the Kitimat terminal. The total budget for the LNG Canada project, including CGL and upstream assets, has been estimated at $40 billion, also unconfirmed by LNG.
The CEO highlighted $3.8 billion in contracts and procurement with B.C. companies, including $3 billion awarded locally and with First Nations.
At the height of construction, the expected number of LNG workers will rival Kitimat’s population — 8,236 people at the 2021 census. Klein pointed out that not all workers will be on site at the same time.
Klein said LNG Canada will try to limit the impact of the influx of mostly “flying” workers into the community, but will not take any new steps to limit illegal drugs and crime.
Workers are hired and background checks are conducted by LNG Canada contractors, but there are restrictions on what can be done with respect to background checks.
“It’s more or less the same thing. I mean we will continue to do what we have been doing. Which rather succeeded. Of course there will be incidents and we will deal with them when they happen,” Klein said.
“We talk a lot about a respectful workplace.
Part of that strategy is to keep workers mostly in Cedar Valley Lodge’s on-site accommodations, which include a resto-bar, convenience store, the only Starbucks in Kitimat, and activities ranging from mini-golf to a rock-climbing wall. and a basketball court. Klein praised the recreation facilities and workout facilities which are “probably the best in this part of British Columbia”, saying they make it “really comfortable and welcoming to the people who work here” .
There are Alcohol and Narcotics Anonymous groups, men’s groups, women’s groups, religious groups, and mental health counselors on site.
“There are K-9 searches, we, obviously, if there’s crime, we deal with it,” Klein said.
“More generally, we try to address mental health and addictions issues, which are a problem throughout society. We try to resolve the underlying problem and then of course we liaise very closely with the District of Kitimat and the RCMP if there are any issues to resolve them.
Klein said new workers participate in Indigenous culture discussions and awareness sessions before they even begin safety training. “It’s about respecting Kitimat, respecting our community and respecting each other.”
Klein said LNG Canada was committed from the start to minimizing the impact in the communities of Kitimat and Terrace. Especially around infrastructure. “That’s one of the reasons why we have a facility here and why we have two health clinics here on site so as not to burden the health system.”
For much of the COVID period, Klein said people weren’t allowed to leave the camp, but workers are now free to do whatever they want outside of work hours and spend money. money in local businesses.
“There is a part of the community that is primarily focused on minimizing the impact on them, and then there is a part of the community, the business owners, who are eagerly awaiting the opportunity to generate more income. And there is a balance to be struck there.
Klein said while the facility will increase local emissions, Canada’s relatively clean natural gas industry will offset global emissions and reduce coal dependence in Asia amid increased demand for US LNG in Europe.
“On net zero, our goal is to reduce the environmental impact here in Kitimat,” he said, adding that First Nations have different priorities, ranging from jobs to concerns about responding to any spills. gas potential in the ocean.
“We have tried to meet with all First Nations where they wish to be met and have a discussion about impact mitigation that is meaningful to them and it is an ongoing dialogue.
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