NW Shelf LNG project contract awarded

Woodside Energy Ltd, operator of the North West Shelf joint venture, has awarded the front-end engineering design for the proposed expansion of the North West Shelf LNG expansion project to the Kellogg Joint Venture, which comprises M.W. Kellogg Co., JGC Corp., Kaiser Engineers Pty. Ltd., and Clough Engineering Ltd.

Sept. 21, 1998

The contract follows completion of feasibility work on the expansion and approval by the North West Shelf participants on the basis of design for the addition of two gas trains. Front-end design work is to be completed in mid-1999 to allow construction to begin by yearend 1999. The work involves development of detailed project specifications for the expansion and will enable subsequent development of tender contracts for procurement and construction.

Total cost of the design work will be about $73 million (Australian).

Expansion plans remain on schedule to provide first LNG from the new plant in 2003. Japanese buyers have provided preliminary forecasts of their supply needs, and this has formed the basis of current talks aimed at securing a letter of intent for the expansion before yearend 1998.