The bidding process for contracts to build the C$40 billion LNG Canada liquefied natural gas project in British Columbia has been cancelled, further jeopardizing the provincial government’s hopes of reaping billions from a gas bonanza.
Lead contractor CFSW LNG Constructors has, in a surprise move, cancelled the bidding process covering fabrication of production modules for the liquefied natural gas project, operated by a Shell-led consortium, reported Upstream, the industry’s global news publication.
Sources involved in the tender exercise told Upstream they were only recently informed by CFSW of the cancellation, having submitted bids back in March 2016 and having held numerous clarification meetings over the past six months.
Low commodity prices have been causing cash flow problems for oil and gas companies, which is understood to have spurred the decision by project partners to shelve the contracts for engineering, procurement and construction of modules for the two-train LNG plant, Upstream reported.
“The bids for module fabrication have now been cancelled with no award to be made,” a source from one of the contenders told Upstream.
AsianPacificPost.com – December 6, 2016.
Want More Investigative Content?
