Chevron Australia awards construction contract

Chevron Australia Pty. Ltd. has awarded a $500 million (Aus.) contract to Thiess Pty. Ltd. for site preparation and construction of temporary facilities for the proposed 3-train LNG and domestic gas Gordon Project on Barrow Island off Western Australia.

Jul 9th, 2009

Rick Wilkinson
OGJ Correspondent

MELBOURNE, July 9 -- Chevron Australia Pty. Ltd. has awarded a $500 million (Aus.) contract to Thiess Pty. Ltd. for site preparation and construction of temporary facilities for the proposed 3-train LNG and domestic gas Gordon Project on Barrow Island off Western Australia.

The project will be supplied from the Greater Gorgon gas fields, including Jansz and Io.

Theiss is in a joint venture with Decmil Group Ltd. and Kentz Corp. Ltd. that in June was awarded another $500 million (Aus.) contract to design and construct an accommodation village capable of housing 3,300 people on the island.

Project scope for the new contract includes preparation of finished earthwork levels for the LNG plant and associated storage tanks, along with production of road base material and feedstock for concrete aggregate production. It also includes reticulation of site services, a material offloading facilities causeway and breakwater plus temporary construction facilities to be used by other contractors later.

The offshore gas fields will be developed via subsea wells and two pipelines bringing gas to Barrow Island where three LNG trains will each produce 5 million tonnes/year. There will also be a 300-terajoule/day domestic gas plant feeding into a pipeline to the mainland and a carbon dioxide sequestration plant with capability of storing the high levels of carbon dioxide contained in the Gorgon field in deep formations beneath the island.

Chevron has 50% of the project while ExxonMobil Corp. and Royal Dutch Shell PLC have 25% each.

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