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Pipeline workcamp contract awarded to LNG Canada

Don Horne   


Analysts say the awarding of a workforce accommodation contract to Houston-based Civeo Corp. is another sign that the $40-billion LNG Canada project is headed for a positive final investment decision later this year.

Civeo told Canadian Press it has been awarded contracts to supply temporary work camps at four locations along the Coastal GasLink pipeline from Dawson Creek, B.C., to the west coast of B.C., on the condition that the liquefied natural gas export terminal is built.

The proposed 670-kilometre pipeline is to be used to transport natural gas from northeastern B.C. to the facility near Kitimat, B.C., where it will be super-cooled and loaded on ships for transport to mainly Asian markets.

In a note to investors, CIBC financial analysts say the contract award adds to evidence that partners in the Royal-Dutch Shell-led project will agree to proceed, noting that Civeo has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 4,500-bed temporary camp for the export terminal construction phase.


Last month, pipeline owner TransCanada Corp. awarded the construction contract for the pipeline to a consortium, also on the condition of a positive investment decision on LNG Canada. Civeo, which operates several work camps in the oil sands region of northern Alberta, told Canadian Press it is to provide a total of over 2,000 rooms under the pipeline contract and revenue is expected to be about $100 million from 2019 to 2021.

The company adds it will also partner with a First Nation for each facility.

“The strength of our First Nation relationships was critical to these awards,” said Civeo CEO Bradley Dodson in a news release.

In May, Malaysian state-owned energy company Petronas announced it had agreed to take a 25 per cent equity interest in LNG Canada.

(Canadian Press)


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