Coastal GasLink Awards Another Camp Contract
Calgary-based Black Diamond Group said July 16 its workforce solutions business unit has been awarded a $42.5mn (US$32.4mn) contract to provide remote workforce accommodations for the construction of TransCanada’s Coastal GasLink project, which will deliver feed gas to the proposed LNG Canada export terminal at Kitimat, BC.
The contract is conditional on LNG Canada’s joint venture participants taking a positive final investment decision (FID) later this year. It is the fifth such camp contract awarded recently by Coastal GasLink, following on the heels last week of similar awards to Houston-based Civeo.
In connection with its partnership with the West Moberly First Nations, Black Diamond has conditionally secured a 908-bed turnkey camp contract for 27 months to service the construction of the project. Pending a positive FID, pipeline construction is expected to begin in early 2019 and first revenue is anticipated concurrently.
“We are excited that Black Diamond has been selected to support this major Canadian LNG project and we believe our large fleet of high quality accommodation assets leaves us well positioned for additional associated opportunities,” Black Diamond CEO Trevor Haynes said. “We believe this contract award will contribute significant value to our indigenous partners, our shareholders and to our customer.”
Black Diamond will use its existing accommodation assets to execute the contract, and new capital investment requirements are expected to be nominal.