The scope of the works includes the design, engineering and construction of the pipeline to transport coal seam gas (CSG) from the Surat and Bowen basins to a proposed LNG processing site located at Laird Point on Curtis Island, Gladstone.
Subject to a final investment decision for the project scheduled for the end of 2010, construction on the pipeline will start in late 2011 with completion by the end of 2013.
A joint venture between Baulderstone and Bilfinger Berger Services has also been awarded the upstream facilites contract for the project.
Upstream operator Origin Energy Executive General Manager Paul Zealand said that the design studies for the upstream facilities and pipeline had been undertaken, and detailed engineering and preparatory works will continue.
Article continues below…“Both the pipeline and the upstream contracts are scalable to include the entire 450 km gas transmission pipeline construction and a portion of the gas production facilities for the project.”
In addition, APLNG has awarded an $A220 million drilling and workover rig contract to Savanna Energy Services, which includes two hybrid drilling rigs and two workover rigs for a five-year term from September 2010, creating 50 jobs in Queensland.
Mr Zealand said “This contract is designed to provide the very latest in drilling and rig technology, supplement our existing drilling operations and help us to meet our target of between 300 and 500 wells a year over the life of the project.”
Savanna President and Chief Executive Officer Ken Mullen said “Savanna will establish a new operational base in Queensland to support the contract and provide training and support facilities for local crews and rig management.”
Meanwhile, Origin's Managing Director Grant King has said that the APLNG project has strengthened its bid to sign up potential gas buyers on the back of the contract awards.
“There is an increasing perception that our project is real and can deliver in [2015]. That’s far more important in the buyer’s eyes than being first, because each year buyers have needs for gas,” Mr King (pictured) said.
Origin has said it intends to announce a buyer by the second quarter of 2010.
Mr King commented that getting the project right was more important than exporting LNG from Gladstone before rival projects such as BG Group/QGC’s Queensland Curtis LNG Project and the Santos-Petronas joint venture Gladstone LNG Project, both of which plan to begin LNG shipments in 2014.
