Civeo announces contract with LNG Canada

The contract will cover potential early works and early days construction if LNG Canada does decide to proceed.

Civeo — which many in Kitimat may know better from their former name PTI Group — have announced they’ve locked in a deal for 400 beds with LNG Canada

LNG Canada says they need the 400 beds for a proposed stage of early work site preparation projects coming in the fall, and this contract is not in anticipation of a full-out construction phase.

The company says they are “exploring the potential” to do some advance work, which calls for the need of the 400 beds.

The contract with Civeo does not preclude  the company from eventually developing what they call the “worker accomodation village,” or the essentially the company’s own work camp in the industrial area.

This new contract with Civeo covers the next 15 months, says LNG Canada. They company noted that the Civeo contract will also cover the first part of construction of LNG Canada while their own camp is being built, if the company makes a positive final investment decision for it.

Civeo says their new building for Kitimat under this contract will be called the Sitka Lodge

Civeo has already had the land zoned and approved in the Strawberry Meadows area for worker accomodations, which at a full build can reach to approximately 2,000 beds.

The company and the town have negotiated density bonuses for the facility, which will provide money to an affordable housing fund managed by the District of Kitimat.

“This contract is an important milestone for Civeo and our clients, and we are excited to establish a strong position in the Kitimat region to support work associated with this potential LNG project,” said Civeo President Brandley Dodson. We are proud to be part of a project with the potential to transform Canada’s natural resource sector and look forward to working with LNG Canada in the region.”

On the business end, Civeo has increased their 2015 capital expenditure to reflect the Sitka Lodge, which bumps their expenditure guidance from $80 million to $90 million, while they expect most revenues to to be received in 2016.

 

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