Civeo pulls out of LNG Canada worker camp agreement

Civeo pulls out of LNG Canada worker camp agreement

ATCO steps in to take over from U.S. company

U.S.-based construction company Civeo has pulled out of a joint venture partnership with Bird Construction to build LNG Canada’s massive worker accommodation camp in Kitimat.

The announcement of the dissolution of the partnership between Civeo and Mississauga-based Bird Construction was made on Monday, December 3, at 6 p.m Eastern Time.

In its place, and also announced Dec. 3, is a new partnership between Bird and Calgary-based ATCO Structures to complete the construction of the 4,500-bed Cedar Valley Lodge, situated on Rio Tinto land adjacent to its smelter.

Civeo investor relations manager Regan Nielsen said the decision by the Texas-based company to dissolve its partnership with Bird partly came about as a result of the delayed LNG Canada Final Investment Decision in 2016 and “a changing market backdrop”, coupled with a strategic decision by Civeo to begin outsourcing the manufacturing of accommodation units.

“As a result, Civeo felt it was in its best commercial interest, as well as the best interest of LNG Canada and its partner, to no longer participate in the Bird-Civeo Joint Venture,” said Nielsen. “This decision aligns with Civeo’s sourcing strategy in its U.S. and Australian operations.”

Nielsen said the outsourcing of the construction of its accommodation units ties in with Civeo’s decision to close its manufacturing plant in Alberta.

“Civeo has since, with the consent of Bird, LNG Canada and [Fluor], elected to exit its participation in Bird-Civeo JV,” said Nielsen.

“Bird, the managing partner of the Bird-Civeo JV, continues to lead the design and construction of the Cedar Valley Lodge and has entered into a joint venture with ATCO Structures LNG Limited Partnership, which is now a party to the novated contract.”

Novation, in contract law and business law, is the act of “replacing an obligation to perform with another obligation, or adding an obligation to perform, or replacing a party to an agreement with a new party.”

https://www.northernsentinel.com/news/kitimat-gets-first-look-at-lng-canada-timeline/

Nielsen said Civeo was primarily focused on the modular aspect of the build and Bird on the site construction.

“We have no remaining contractual or financial obligations to Bird. There was no financial impact to Civeo related to winding up the [joint venture],” said Nielsen.

Bird and Civeo formed the Bird-Civeo Joint Venture in 2015 to bid for the Cedar Valley Lodge project. In May 2016 LNG Canada announced the Bird-Civeo partnership would be responsible for the Lodge’s engineering, procurement and construction (EPC).

They were handed a limited notice to proceed pending the LNG Canada FID announcement.

ATCO’s chair and CEO Nancy Southern said in a statement released late on Monday that the Bird-ATCO Joint Venture would supply the 4,500 rooms for the lodge through an existing joint venture between ATCO and the Haisla Nation.

“The project is one of the largest accommodation facilities ever built in Canada and will provide high-quality amenities for the LNG Canada workforce,” reads the statement.

Southern said ATCO has executed several operational support services contracts and modular site accommodation projects within the Kitimat region.

“Since 2011, the company has operated a successful joint-venture partnership with the Haisla Nation, which will also benefit from the Cedar Valley Lodge project.

“Our long history of delivering major workforce housing projects throughout the world continues to position us well to support landmark infrastructure development in the years ahead,” said Southern.

In 2016, ATCO completed construction of a 1,600 person workforce housing facility for BC Hydro’s Site C project. The company has also delivered major workforce accommodations for customers throughout the world, including Canada, the U.S., South America, the Middle East and Africa.

https://www.northernsentinel.com/news/camp-contract-awarded-by-lng-canada/

Civeo CEO and director Bradley Dodson said the company was proud of the work that the Bird-Civeo joint venture had completed on the lodge.

“We look forward to continuing to be a partner to LNG Canada through our Sitka Lodge [in Kitimat] and our mobile camps supporting the Coastal GasLink Pipeline Project,” said Dodson.

Early last month Civeo announced it was expanding its 646-room Sitka Lodge to approximately 1,100 rooms to provide housing for an initial LNG Canada construction workforce and for workers building the western-most section of the Coastal GasLink pipeline.

Contact the newsroom

ATCObird constructionciveoCoastal GasLinkkitimat kitamaatlng canadaPipelineTransCanada

 

The signing of the agreement between Bird, Civeo and LNG Canada for the construction of the worker camp. (File photo)

The signing of the agreement between Bird, Civeo and LNG Canada for the construction of the worker camp. (File photo)

Just Posted

The Co-op gas station at Whiskey Creek is burning after a camper van burst into flames just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Kids from a MOSS Sailing Camp sail just off Canal Waterfront Park in Alberni Inlet during a day camp in August 2014. (AV NEWS FILE PHOTO)
MOSS Sailing camps return to Alberni Valley

One-week camps designed for kids will take place at Sproat Lake

Robert Gunn of Alberni Climate Action loads garbage discovered in the Alberni Inlet around Cous Creek into his canoe during a recent ocean shoreline cleanup. (SUBMITTED PHOTO)
Alberni Climate Action group creates NIC scholarship

Students attending college full time may apply through NIC

Two ambulances and a medevac helicopter are on scene at Taylor River Flats rest area on Highway 4 due to a serious motor vehicle incident. (PHOTO COURTESY MAGGIE BROWN)
Highway 4 reopens after accident at Taylor River Flats

Multi-vehicle crash had closed highway to west coast

The Rollin Art Centre is holding children’s art camps this summer. (SUBMITTED PHOTO)
ARTS AROUND: Celebrate art in the garden

Rollin Art Centre will host art event on Saturday, June 26

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
Vancouver Island researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada: UVic professor

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

Most Read