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.”

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.

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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

 

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

Just Posted

NEWS FILE PHOTO
Voters in Chilliwack, Abbotsford, Mission and Langley may head back to polls in 2021

Election of local politicians in BC vote would trigger by-elections in several Fraser Valley cities

Bertrand Creek Enhancement Society volunteers clean up Aldergrove streams. (Aldergrove Star files)
Bertrand Creek Enhancement Society looking for new members to help protect Aldergrove waterway

The society hopes to hold stream clean-ups and blackberry bush removal events this fall

Coast Spas in Langley was ordered closed by the Fraser Health Authority after 12 staff came down with COVID-19 (undated Google Street View image)
COVID-19 outbreak closes Langley spa manufacturer

Fraser Health reports 12 employees have tested positive

Ferdinand Bredenholler played the last post at the Fort Langley Remembrance Day service in 2019, when a crowd of 6,500 attended. This year, due to the pandemic, organizers are asking the public to follow the ceremonies online rather than attending. (Langley Advance Times file)
A stay-at-home Remembrance Day planned for Fort Langley

Organizers take the annual ceremony online

Pastor Brad Sumner is inviting Halloween trick-or-treaters to visit the Jericho Ridge Community Church for a COVID-compliant celebration. (Courtesy Jericho Ridge Community Church)
VIDEO: A drive-in Halloween at the Jericho Ridge Community Church

A COVID-compliant event for kids on the Langley-Surrey border

NDP Leader John Horgan celebrates his election win in the British Columbia provincial election in downtown Vancouver, B.C., Saturday, Oct. 24, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan celebrates projected majority NDP government, but no deadline for $1,000 deposit

Premier-elect says majority government will allow him to tackle issues across all of B.C.

FILE – Prime Minister Justin Trudeau greets Premier John Horgan during a press conference at the BC Transit corporate office following an announcement about new investments to improve transit for citizens in the province while in Victoria on Thursday, July 18, 2019. THE CANADIAN PRESS/Chad Hipolito
Trudeau congratulates Horgan on NDP’s election victory in British Columbia

Final count won’t be available for three weeks due to the record number of 525,000 ballots cast by mail

Provincial Green Party leader Sonia Furstenau speaks at Provincial Green Party headquarters at the Delta Victoria Ocean Pointe in Victoria. (Arnold Lim / Black Press)
VIDEO: Furstenau leads BC Greens to win first riding outside of Vancouver Island

Sonia Furstenau became leader of BC Greens one week before snap election was called

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

NDP Leader John Horgan elbow bumps NDP candidate Coquitlam-Burke Mountain candidate Fin Donnelly following a seniors round table in Coquitlam, B.C., Tuesday, October 20, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan, NDP head for majority in B.C. election results

Record number of mail-in ballots may shift results

RCMP crest. (Black Press Media files)
Mounties looking for teen boy ‘unlawfully at large’ from Riverview psychiatric hospital

Nolan Godron left the hospital, located at 2721 Lougheed Highway in Coquitlam, without consent on Saturday

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

Canada’s Chief Public Health Officer Theresa Tam responds to a question during a news conference Friday October 23, 2020 in Ottawa. Canada’s top physician says she fears the number of COVID-19 hospitalizations and deaths may increase in the coming weeks as the second wave continues to drive the death toll toward 10,000. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns severe illness likely to rise, trailing spike in COVID-19 cases

Average daily deaths from virus reached 23 over the past seven days, up from six deaths six weeks ago

Most Read