OREANDA-NEWS. February 05, 2018. The Shell-led LNG Canada export project has selected two engineering joint ventures as finalists to design and build the proposed facility in Kitimat, British Columbia (BC).

The ventures are a partnership of France's TechnipFMC and US firm KBR, and a partnership of Japan's JGC and US-based Fluor.

LNG Canada plans to select the contractor this year based on the most competitive proposal.

"While this is a significant milestone, work remains to be done to deliver a globally cost competitive project that is well positioned to take a final investment decision," said LNG Canada chief executive Andy Calitz.

LNG Canada has an estimated cost of C$25bn-C$40bn ($20bn-$36bn) for four liquefaction trains with combined peak capacity of 27.6mn t/yr, equivalent to 3.7 Bcf/d (105mn m?/d) of gas, and associated facilities. It is slated to be built in two phases with baseload capacity of 13mn t/yr each. The proposed 419-mile (675km) Coastal Gas Link pipeline to bring shale gas from northeastern BC is expected to cost an additional C$4.7bn.

The LNG Canada partners in July 2016 indefinitely delayed an investment decision because of the weak economics of exporting Canadian LNG in the current low-priced market. Shell in July said that LNG Canada is among two LNG projects for which it is considering making a positive investment decision this year. The other is the 15mn t/yr Lake Charles LNG export project in Louisiana, where Shell would have all the liquefaction capacity but not equity.