Floating energy solutions provider Höegh LNG and construction company Bechtel have been selected to perform pre-front end engineering and design (pre-FEED) work for energy company Steelhead LNG’s proposed Malahat LNG project south of Mill Bay on Vancouver Island.

The project comprises floating natural gas liquefaction and export facilities located on the shoreline of Malahat Nation-owned land.

Steelhead LNG CEO Nigel Kuzemko 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."

Set to begin with immediate effect and run through to spring 2016, the work will include proof of concept studies for developing floating LNG production / storage / offloading facilities at the site for up to six million tonnes per annum (mtpa) of LNG.

A basis of design will also be established to support the FEED phase.

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"This agreement is a reflection of our commitment to developing projects to the highest technical and environmental standards."

Bechtel offshore business line general manager Joe Gebara said: "The Bechtel team will apply its extensive offshore and LNG technical and execution knowledge and experience and 40 years working in Canada to develop Malahat LNG."

On 20 August, Steelhead LNG and the Malahat First Nation have announced the completion of a mutual benefits agreement and long-term lease supporting the proposed Malahat LNG development.

Malahat LNG is a liquefied natural gas (LNG) facility, which is expected to have a capacity of up to six million tonnes per annum (mtpa) and would include floating liquefaction facilities that are moored to the shoreline and minor supporting land-based infrastructure.

The project will also create many additional direct as well as indirect jobs on Vancouver Island.

Image: Announcement of Malahat LNG Project at Malahat Nation’s Kwunew Kwasun Cultural Resource Centre on 20 August. Photo: courtesy of Phil Ives.