LNG Canada to source Phase 2 modules from Chinese fabricator for Kitimat expansion

LNG Canada will again use China Offshore Oil Engineering Co. (COOEC) for the specialized fabrication it says it requires for its $33 billion Phase 2 expansion in Kitimat, CBC News reported on Friday.

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"There are no fabrication yards in Canada that can manufacture and deliver the additional modules required for Phase 2," LNG Canada spokesperson Paul Hagel said in an email. He said only five yards globally have the space, capacity, quality systems and marine access for the work, including COOEC, which fabricated modules for Phase 1.

The expansion, announced on Tuesday, adds two trains for a total of four, increasing production from 14 to 28 megatonnes per year once construction is complete, likely in the early 2030s. Expansion of stations in the pipeline network will target 70 per cent Canadian steel, according to CBC.

A spokesperson for Finance Minister François-Philippe Champagne said the project as a whole stands to benefit Canadian manufacturers.