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Total Pages: 17
Table Of Contents
- LNG Canada Q3 Monitor: Key Takeaways
- Union Labor Agreements
- Contract Analysis & Estimates
- On-Site Construction Progress
- Awarded Construction Contracts
- Future Construction Contracts
- Labor Availability
- Project Estimates
- Satellite Image Analysis
- Baseline Site Satellite Image Overview
- Marine Terminals
- LNG Process Area
- LNG Storage Tanks
- Disclosures
Key Takeaways:
1) Union Craft Avg. Wage Rate Escalators & Impact On JGC/Fluor, and broader project cost…
What’s Happened/Changed: Part of our current focus is on LNG Canada’s wage rate escalation and union labor agreements post-2023.
Why Does That Matter: EPC lump sum proposals generally include labor escalation between 1-3% per annum (rates vary based on geography/availability). Labor agreements supporting LNG Canada and other B.C. projects expire in 2023 and have a relatively advantageous average labor escalation rate of…..continued.
For context, union labor strikes, renegotiated agreements, and significant wage rate escalation supported Gorgon LNG coming in $20B+ over budget.
What’s The Impact:…..continued (Page 3)
2) Taking A Look At JFJV’s Longer-Term Labor Inflation Risk (Page 5)
3) JFJV’s Construction Activity – What does it tell us about the project timeline? (Page 8)
4) Satellite Image Analysis Baseline – Benchmarks for Remainder of the Project…. (Pages 9-17)
