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Steelhead LNG awards pre-FEED contract

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LNG Industry,

Steelhead LNG has signed an agreement with Höegh LNG and Bechtel for pre-front end engineering and design (pre-FEED) work at its proposed Malahat LNG project.

The Malahat LNG project consists of floating natural gas liquefaction and export facilities located approximately 8 km south of Mill Bay, British Columbia (B.C.), Canada. The LNG project is on the shoreline of land owned by the Malahat Nation.

The pre-FEED work will include Proof of Concept studies for developing floating LNG (FLNG) production/storage/offloading facilities for up to 6 million tpy of LNG at the proposed site. It will also establish a Basis of Design appropriate to support the FEED phase of the project. Engineering design and studies undertaken through pre-FEED will also support the environmental assessment and facilities permitting processes. The pre-feed work is expected to run until spring 2016.

Nigel Kuzemko, CEO of Steelhead LNG, said: “This agreement is a reflection of our commitment to developing projects to the highest technical and environmental standards […] Together, Höegh and Bechtel provide Malahat LNG with a unique combination of experience and expertise in maritime operations and the design and construction of LNG facilities.”

Lawrence Lewis, CEO, Malahat Nation, commented: “The awarding of Malahat LNG’s pre-FEED engineering work to Höegh LNG and Bechtel, experienced providers of specialised services in the LNG sector, is a reflection of the importance Malahat Nation and Steelhead have placed on making sure the design of the project is appropriate environmentally and technically for the Saanich Inlet.”

Sveinung J. S. Støhle, President and CEO of Höegh LNG, added: "We are pleased to enter into this agreement with Steelhead LNG for their proposed Malahat LNG project […] We are confident in the strong market fundamentals of the global LNG sector as well as Steelhead’s Canadian project, and look forward to working closely with Bechtel and Steelhead to deliver a cost-effective LNG solution that fully addresses the environmental and technical aspects of the project.”

Edited from press release by

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