All camp contracts now in place for LNG Canada pipeline

Photo: Black Diamond Group

Black Diamond Group is the latest oilfield service company to announce success in a flurry of contract awards for the Coastal GasLink Pipeline, which will service the LNG Canada project.

The company announced on Monday it has secured a conditional $42.5 million contract for remote workforce accommodations for Coastal GasLink. Like the rest of the contracts announced to date, it is conditional on Shell and its partners announcing a positive final investment decision on LNG Canada, which is expected this year.

Black Diamond said that in connection with its indigenous partnership with the West Moberly First Nations, it has conditionally secured a 908-bed turnkey camp contract for 27 months to service the construction of the pipeline project. The camp will be constructed utilizing the company’s existing accommodation assets and any associated new capital investment required is expected to be nominal, Black Diamond said.

“We view this contract award positively for Black Diamond Group, as the company does not own any land in Kitimat, so this gives them some guaranteed exposure if LNG Canada proceeds,” GMP FirstEnergy analyst Ian Gillies wrote in a research note on Monday.

“We now believe all camps contracts for the Coastal Gaslink pipeline have been awarded and the next tranche of camp awards will be focused on the facility site.”

Pipeline construction is expected to begin in early 2019.

JWN Energy