15/09/2009 - 08:48

Clough JV wins $2.7bn Gorgon contract

15/09/2009 - 08:48

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A joint venture including Perth-based engineering firm Clough has been awarded a key $2.7 billion contract for the massive Gorgon gas project.

Clough JV wins $2.7bn Gorgon contract

A joint venture including Perth-based engineering firm Clough has been awarded a key $2.7 billion contract for the massive Gorgon gas project.

The JV, known as the Kellogg Joint Venture Group, is led by Kellogg Brown and Root and includes JGC Corporation and Hatch.

The JV secured the engineering, procurement and construction management contract for the downstream and logistics portion of the $43 billion project.

The contract comes a day after Gorgon partners - Chevron, ExxonMobil and Shell - formally approved the project which is expected to reap billions of dollars for the local economy.

"Our continued involvement with this large, modularised grassroots LNG project demonstrates KBR's commitment to providing our customers with leading LNG project execution and allows KBR to build on its LNG expertise and experience in Australia," KBR Hydrocarbons group president John Rose said.

Under the contract, the JV partners will construct the liquefied natural gas facility on Barrow Island, which comprises of three, 5 million tonne per annum gas trains and build treatment facilities and accommodation units.

The contract also includes the construction of a 300 terajoule domestic gas plant.

In a statement, Clough said work for the EPCM contract will be conducted from two main operating centres in Perth and in London, with support centres in the US, Singapore, Indonesia and Japan.

The JV will also use several fabrication yards across South East Asia and Australia to support the planned 250,000 tonnes of LNG modules.

"As an Australian based EPC contractor, Clough is delighted to be playing a major role, both as a partner in KJVG and in delivering the Gorgon LNG facilities for Chevron and its joint venture partners" Clough chief executive John Smith said.

"Gorgon is the biggest and most challenging LNG project to be undertaken in Australia, and one we are proud to be associated with."

Today's contract is the latest win for the JV in relation to Gorgon. Earlier this year, the JV completed the updated onshore facilities front end engineering and design and execution planning.

The Gorgon project partners have so far awarded about $5 billion worth of contracts.

 

The announcement is below:

 

 

Engineering and Construction Company Clough (ASX :CLO) announced today that Kellogg Joint Venture Group (KJVG) has been awarded by Chevron Australia Pty Ltd an estimated AUD ~2.7 Billion contract to Engineer, Procure and Construction Manage (EPCM) the LNG downstream and logistics portion of the multi-billion dollar Chevron-operated Gorgon LNG Project.

KJVG, a KBR led Joint Venture consisting of partners JGC, Clough and Hatch, will execute and construct the Liquefied Natural Gas (LNG) facility on Barrow Island, consisting of three 5 million tonne per annum (MTPA) LNG trains, gas processing and treatment facilities, product storage and offloading, complete offsites, utilities and accommodations. The EPCM contract also includes a 300TJ/d domestic gas plant. The design of the facility features improvements in greenhouse gas emissions performance including improved waste heat recovery and the provision of facilities for the injection of reservoir carbon dioxide deep into the subsurface.

The EPCM effort is a modular construction strategy to minimize impact on the island during the construction phase and is being conducted from two main operating centres located in Perth, Australia and London, UK with support from global centres in USA, Singapore, Indonesia and Japan. KJVG plans to utilize several fabrication yards across South East Asia and Australia to support the planned 250,000 tons of LNG modules. Along with the above unique and one of kind design items, KJVG will implement a comprehensive Quarantine management plan for Barrow Island.

"As an Australian based EPC contractor, Clough is delighted to be playing a major role, both as a partner in KJVG and in delivering the Gorgon LNG facilities for Chevron and its joint venture partners" said Clough CEO, John Smith.

"Gorgon is the biggest and most challenging LNG project to be undertaken in Australia, and one we are proud to be associated with".

The Gorgon Project plans to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia. The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia's largest-known gas resource. Chevron is operator of the Project with a 50% interest, and ExxonMobil and Shell each hold 25%.

KJVG, formed as a partnership between Clough Projects Australia Pty Ltd, KBR E&C Australia Pty Ltd, JGC Corporation and Hatch Associates Pty Ltd Group, completed the updated onshore facilities Front End Engineering and Design (FEED) and execution planning earlier this year. The joint venture allows Clough to combine its strengths with those of the KJVG partners to provide the best engineering, procurement and construction personnel and experience in the market.

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