What happened
LNG Canada has confirmed that it will use Chinese steel in modules for a substantial part of its $33 billion expansion of its liquefied natural gas facility in British Columbia. The large prefabricated sections will be built in China and shipped to Canada, similar to the process used for the facility's first phase.
The company has chosen China Offshore Oil Engineering Co. Ltd. (COOEC) to build the prefabricated sections, citing technical reasons and the lack of fabrication yards in Canada that can manufacture and deliver the required modules. COOEC is one of only five fabrication yards in the world that have the necessary capabilities for this project.
The expansion, which is expected to be operational by the early 2030s, will double the facility's production capacity from 14 million to 28 million tonnes per year. While the pipeline compressor part of the expansion will use steel from Canadian suppliers, the use of Chinese steel in the modules has raised concerns among some politicians, who argue that the government should have created an environment where Canadian steel could be used instead.
