Analaysts Say Civeo Contract Bodes Well for LNG Canada Project
Analysts say the awarding of a workforce accommodation contract to Texas-based Civeo Corporation is another sign that the LNG Canada project near Kitimat is heading for a positive final investment decision later this year.
Civeo says it has been awarded contracts to supply temporary work camps at four locations along the Coastal GasLink pipeline from Dawson Creek to Kitimat, on the condition that the liquefied natural gas export terminal is built.
In a note to investors, CIBC financial analysts say the contract award adds to evidence that partners in the Shell-led project will agree to proceed, noting that Civeo has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 45-hundred-bed temporary camp for the export terminal construction phase.
Last month, TransCanada Corporation awarded the construction contract for the pipeline to a consortium, also on the condition of a positive investment decision on LNG Canada.
[The Canadian Press]