Canada’s Kwispaa LNG and Hyundai Heavy Industries close deal for Front-End Engineering and Design for the Kwispaa LNG Project

Barcelona, Spain – The Kwispaa LNG Project 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 At-Shore LNG™ hulls.

This 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. EPC contractor tenderers include:

• Black & Veatch / Samsung Heavy Industries / PCL Industrial Management Inc.;
• CB&I / Offshore Oil Engineering Co., Ltd. (COOEC); and
• TechnipFMC.

All FEED work is expected to commence in early 2019.

On September 19, at the Gastech Conference in Barcelona, representatives from Steelhead LNG, Huu-ay-aht First Nations, and Hyundai Heavy Industries’ Shipbuilding Division formalized the contract for the design of two At-Shore LNG™ hulls as part of phase one of the Kwispaa LNG Project. Each hull is expected to measure 340 meters in length and 60 meters wide and feature five individual tanks that provide approximately 280,000 metres³ of internal LNG storage.

“This agreement with Hyundai Heavy Industries for two At-Shore LNG^TM 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,” said Steelhead LNG CEO Nigel Kuzemko. “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 award of this FEED contract is the start of the process leading to the 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 At-Shore LNG^TM hulls and allows for fair price adjustments for certain defined parameters that could change throughout the FEED process.

“As a global leader in the ship-building industry, we are tremendously pleased to be partnering with Steelhead LNG for the design of the At-Shore LNG^TM hulls for the Kwispaa LNG Project,” stated Hyundai Heavy Industries. “This agreement is a reflection of our world-leading technical and manufacturing capabilities, and we look forward to proceeding into FEED for this important project.”

Kwispaa LNG

The Kwispaa LNG Project is a proposed Canadian LNG export facility located at Sarita Bay on Vancouver Island, British Columbia on land owned by the Huu-ay-aht First Nations. The 475-ha site provides natural deep water and is a short distance to open ocean for efficient access to market. With a FID anticipated in 2020, the first phase of the project is expected to be operational in 2024, and will provide a capacity of approximately 12 mtpa, with the ability to expand to 24 mtpa in the future.

Steelhead LNG

Steelhead LNG is a Vancouver-based energy company focused on developing the Kwispaa LNG Project, located on Vancouver Island, British Columbia, through a unique co-management relationship with the Huu-ay-aht First Nations. Steelhead LNG’s management team’s experience includes guiding some of the world’s leading energy companies and projects, with commercial and technical expertise that spans the entire natural gas and LNG value chain. From project concept to product delivery, Steelhead LNG is committed to responsibly creating and delivering value for the communities, suppliers and customers that it serves.

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