19/09/2012 - 14:47

Empire awards construction deals for Red Gully

19/09/2012 - 14:47


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Empire awards construction deals for Red Gully

Privately-owned firms Thistle Fabrication and Primero Group, as well as Geraldton's Lenane Holdings, have won construction contracts for the Empire Oil & Gas-led Red Gully processing facility near Gingin.

Empire Oil & Gas announced today that Thistle would undertake welding, pressure testing, x-raying and burying of a three kilometre pipeline to link the $29.1 million plant to the Dampier to Bunbury natural gas pipeline.

Primero Group was awarded the contract to install the facility, while the earthworks contract was awarded to oilfield service company Lenane Holdings.

Empire said all long lead items for the plant had been procured and earthworks were well underway.

Commissioning of the facility is due for the first week of January.

Commercial terms of the contracts were not disclosed.

The plant, which will be capable of processing 10 million cubic feet of gas and condensate, is being funded largely through a gas sales agreement between Empire and its joint venture partners, ERM Power and Wharf Resources, and Alcoa.

Alcoa will tip in $25 million for 15,000 terajoules of gas from the plant, while condensate will be sold to the BP Refinery at Kwinana.

Empire's share of the remaining construction costs is $2.82 million.

At close of trade today Empire's stock was steady at 1.4 cents, with just over 1 million securities changing hands.





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