Civeo secures $100mn contract for LNG Canada accommodation supply
US accommodation services company Civeo has announced that it has secured contracts from LNG Canada to provide the Kitimat, BC project with housing work camps at four different locations whilst the liquefied natural gas export facility and pipeline are constructed.
The four locations will be spread out between Dawson Creek and the west coast of BC whilst the 670km pipeline is built.
The deal is subject to a “positive final investment decision from the LNG Canada joint venture”, on the condition that the export terminal itself is completed.
The contracts will require Civeo to provide more than 2,000 rooms in total, with revenues expected to reach CAD$100mn between 2019-2021.
“We are pleased to announce these contract awards, solidifying our position as the partner of choice for workforce accommodation solutions in Canada,” said Bradley J Dodson, Civeo’s President and Chief Executive Officer.
The US firm will be looking to deploy CAD$10mn across the four locations next year that will include maintenance and new site service equipment and a number of modular assets.
Off the back of the announcement, Civeo’s shares rose almost 8%.