Valmec to work on DBP gas storage facility

Local engineering and construction group Valmec has won a $5.4 million contract for work on DBP Development Group’s Tubridgi gas storage facility near Onslow, which will be the largest in Western Australia when completed.

Work under the contract with the DUET Group subsidiary will begin immediately, with the scope including multi-disciplinary field execution services.

DDG announced plans to build the $69 million gas storage facility late last year.

At peak, the facility will have the capacity to hold 42 petajoules of gas with daily deposit and withdrawal rates of about 50 terajoules.

DDG has already locked in CITIC Pacific Mining as a foundation customer for the facility.

“We are delighted to have received this contract on this strategic Western Australian project and are looking forward to continuing our strong working relationship with the DDG team,” Valmec managing director Steve Dropulich said.

The contract brings Valmec’s order book to about $55 million, with revenue for the 2017 financial year expected to be in the range of $65 million to $69 million; a 30-38 per cent increase on its FY16 result.

Valmec shares were unchanged at 9.5 cents each at 10:50am.