Construction in Vancouver

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VRCA news feature

J a n u ar y 1 3 – 1 9 , 2 0 1 5 v R ca . b c . ca

forecast: Industry buoyed by outlook for LNG in 2015 Boot camp scheduled to get contractors up to speed on qualifications

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FINDit

ptimism is riding high that a final investment decision (FID) will be made by one of the LNG proponents i n 2015 at one of the nor thern coastal ports vying for the development. “We are optimistic that one or two will move ahead,” said Renata King, director of business development for Northern Development Initiative Trust, as three proposals (two LNG pipelines and one export facility) received environmental approval in late 2014 from the B.C. government. Approximately 18 proposals have been put forward. Early construction work such as site preparation for camps and roads has already started at major sites located at Prince Rupert, the District of Port Edward and Kitimat. “That is only millions of dollars compared to the billions that will be invested when projects go ahead,” she said. FortisBC in the B.C. Lower Mainland is already out of the gate at its Tilbury LNG plant. Construction has started on the $400 million expansion, adding 1.1 million gigajoules of LNG to storage and 34,000 gigajoules of liquefying capacity. In November, the Petronas export terminal with the Prince Rupert Gas Transmission pipeline (TransCanada Corp.), which will supply Petronas’ facility, and the Westcoast Connector

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G a s T ra n sm i ssion pip el i ne (Spectra Energy Corp.) received environmental approval from the B.C. government. The Westcoast Connector will feed BG Group’s proposed Prince Rupert LNG facility, although BG Group has announced it won’t make its FID until 2017. In December, the City of Prince Rupert rezoned an area on Tuck Island for inclusion in the official city plan as an area for LNG terminal development. Kitimat, another proposed LNG hub, is looking for a final decision on proposed developments slated to happen there. Newly elected Mayor Phil Germuth said, “We are hoping an FID will come in 2015.” He sees Shell’s joint venture as the leader to reach a FID in 2015. Shell, Korea Gas Corp., Mitsubishi and PetroChina are working together to design, build and operate the proposed LNG Canada project, located in the traditional territory of the Haisla First Nation. T he K iti mat LNG proposa l by Chevron Canada Ltd. is also ca rry i ng out g rou nd works. “They have done a whole whack of land clearing and almost completed the road to their property - which is a huge project,” Germuth said. Recently, a joint venture between Fluor Corp. and JGC has been awa rded a contract by Chevron Canada for pre-construction work on the proposed

Provincial view C7 Data to shape how the industry moves forward this year

constructive comment C11 VRCA getting down to business in 2015

FortisBC has started construction of its expanded Tilbury LNG facility. From left to right: Michael Mulcahy, president and CEO, FortisBC; Barry V. Perry, president, Fortis Inc.; B.C. Premier Christy Clark; and John Walker, executive vice-president, western Canadian operations, Fortis Inc.

Kitimat LNG project. Fluor is also undertaking the engineering, procurement and construction contract for the Kitimat project. It involves the completion of the existing front-end engineering design (FEED) for the construction of an LNG facility near the port of Kitimat. In Port Edward, Petronas – a Malaysian company – leads the Pacific NorthWest LNG joint venture, which is getting closer to an FID on its $11.4 billion proposed project at Lelu Island. In addition, ground works for some of the major camps needed for project have begun, with smaller construction camps established. In Kitimat, Horizon

North Logistics, a camp provider, has acquired ground for a proposed 1,000-man camp and a new hotel. PTI Group Inc. (Civeo) is planning to build a 2,100-man camp and already has a construction camp started to house those building the camp. Shell’s LNG Canada camp will house an estimated 7,000. Camps are also being proposed in the Prince Rupert area. The degree of activity has King working hard to ensure that contractors, subcontractors and suppliers are ready for the economic boom that will come with the building of these multibillion-dollar projects. “We want to make sure they are ready for these projects,” she

Labour emerges as top issue C2 Vancouver Pile Driving brings in $30 million Mexico project C3 Road builders poised for increased activity in 2015 C4 Women playing bigger role in industry C4 Getting the right insurance C5 Specialization seen as key to growth C6

Sharing your viSion. BUILDIng SUCCESS.

said. “These are multinational companies and they have requirements for pre-qualification [to bid on contracts]. We are showing local companies what they need to have in place to have an opportunity,” she said. King has been hosting workshops throughout B.C. providing information to contractors on where to register for potential contracts and also what needs should be met before registering. On January 14, King will host a “boot camp” in Nanaimo for interested construction companies and suppliers. (An earlier boot camp was held in Squamish). continued on page C2

U40 Network helps young execs C6 New rule protects road crews C6 Careful testing crucial in training C8 Schneider lab makes company a solar leader C8 Legal Specs column C9 Documents ease conflicts C10 VCRA award winners C12 Permits hit $1 billion mark C12


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