Kentz/CB&I JV wins $2.3bn Gorgon deal

Chevron has announced it has allocated a $US2.3 billion deal to a joint venture between the Australian division of international engineering group Kentz Corporation and New York-based CB&I.

The deal is the largest contract to be awarded locally by Chevron for its $44 billion Gorgon project.

The contract award follows media speculation earlier this week that local engineering firms UGL and Downer EDI had abandoned a $2 billion deal for a similar scope of works at Gorgon over rising costs concerns. A spokesman for Downer said that speculation was incorrect and the company had been informed by Chevron that it had not been successful.

Under the contract announced today, the Kentz/CB&I joint venture will undertake structural, mechanical, piping, electrical, instrumentation and commissioning support for the construction of three LNG trains at Chevron's Gorgon natural gas project.

Kentz said in a statement today the contract would commence immediately and would provide jobs for 1,650 construction personnel in Western Australia.

Chevron has recently awarded more than $100 million in fabrication deals to WA-based AGC and Civmec.