All delivered: Chinese yards complete modules for Shell-led LNG Canada project

China’s Offshore Oil Engineering Corporation (COOEC) has delivered all the modules it was contracted to fabricate for the Shell-led LNG Canada project in British Columbia, Canada.

The latest batch of modules for the project’s phase one fabricated by COOEC 50:50 joint venture with US contractor Fluor — COOEC-Fluor Heavy Industry (CFHI) — sailed away last week for Kitimat in western Canada for installation, according to Chinese media People’s Daily.

COOEC and CFHI have been contracted to build all the192 modules for the first phase of the C$40 billion (US$30.2 billion) LNG Canada project.

Of the total, 35 carrying a total steel weight of 179,00 tonnes were built at COOEC’s facility in Qingdao city in eastern China’s Shandong province; while the majority of 157 modules with steel weight of 108,000 tonnes were built by CFHI in Zhuhai city of southern China’s Guangdong province, according to information posted on COOEC’s website and People’s Daily.

The modules for phase one fall into three separate packages: Processing, pipe rack and electrical, and utilities. There is also a package for one inlet facilities integrated module.

The modules will be incorporated into two large liquefaction trains with combined capacity of 14 million tonnes per annum.

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COOEC’s Qingdao facility is responsible for the processing modules and pipe racks, while CFHI is tasked to build the utility and electrical modules.

Shell has a 40% stake in LNG Canada and is partnered by Malaysia’s Petronas on 25%, PetroChina and Japan’s Mitsubishi each on 15%, and South Korea’s Kogas on 5%.

LNG Canada chief executive Jason Klein late last year said that phase one was on track to ship LNG by the middle of the decade.

He said at that time that phase one was 70% complete, while the associated Coastal GasLink (CGL) pipeline was 75% complete although over budget.

Early last year, pipeline contractor TC Energy said the pipeline spanning from northeastern British Columbia to Kitimat was above budget — increasing from C$6.6 billion to C$11.2 billion.

He said that all the processing modules should be in place by the middle of 2023.