Valmec wins $16m gas contract

Kewdale-based contractor Valmec has secured early works on a gas project in Queensland, boosting its order book to about $85 million.

The Surat project is a coal seam gas (csg) development, situated 160 kilometres west of Brisbane in the Surat Basin.

It is owned by a joint venture between Shell and PetroChina, Arrow Energy, which has operated in the basin for more than 15 years.

Arrow also operates in Queensland’s Bowen Basin.

Its Surat project is expected to produce 5,000 petajoules (PJ) of csg for LNG export and domestic gas sales over its estimated 35-year life.

First production is scheduled to begin early next year.

Valmec, under a $16 million contract, will deliver water treatment facilities to the Surat site, as part of phase one works on the project.

Valmec will also complete works at the Daandine power station.

It comes less than a month after Valmec was awarded $15 million in work from Water Corporation, as part of a metropolitan and regional infrastructure upgrade program in Western Australia.

Valmec managing director Steve Dropulich said the business had multi-discipline expertise.

“The Arrow Energy contract is another great example of Valmec’s cross-capability with our expertise in water infrastructure being applied to one of our established gas energy clients and the nationally significant Surat Gas project,” he said.

“Clients have recognised the efficiencies and cost savings associated with engaging early with a specialist contractor such as Valmec that has multi-discipline expertise and prides itself on providing a one-stop solution.”

Works under the contract are expected to complete in the 2022 financial year.

Valmec shares were up 3 per cent at 11:25am AEDT to 20 cents.