25/03/2015 - 12:07

UGL secures $120m Santos contract

25/03/2015 - 12:07

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Engineering group UGL has been awarded a $120 million contract to provide plant services for the operational phase of Santos’s Curtis Island LNG facility in Queensland.

UGL secures $120m Santos contract
UGL chief executive Ross Taylor.

Engineering group UGL has been awarded a $120 million contract to provide plant services for the operational phase of Santos’s Curtis Island LNG facility in Queensland.

The scope of work involves UGL providing maintenance, shutdown, engineering and project services for Santos at the facility over an initial three-year term, with options to extend the contract for a further four years.

“This contract, along with the recent announcement of the APLNG maintenance contract, further enhances UGL’s strong base of recurring revenue and positions us well for future maintenance opportunities as LNG facilities currently under construction move to their operational phase,” managing director Ross Taylor said.

Santos’s LNG project comprises a gas field development in the Surat and Bowen basins, a 420-kilometre gas transmission pipeline, and the LNG plant on Curtis Island near Gladstone.

The UGL contract is solely for work at the Curtis Island facility.

UGL will mobilise its workforce on the site sometime during the second quarter of 2015, with Santos expecting to deliver its first LNG cargo at some stage in the year.

Last month, UGL won a new four-year contract with ConocoPhillips on behalf of Australia Pacific LNG to provide downstream maintenance, shutdown and modification project services for the operational phase of the Curtis Island facility for an undisclosed amount.

UGL shares were 0.9 per cent lower at $1.58 per share at 12pm.

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