AUSTRALIA

Onslow road opens

CHEVRON'S $US29 billion Wheatstone LNG project may be facing delays, cost blow-outs and issues wi...

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Wheatstone, a joint venture between the Australian subsidiaries of Chevron, Kuwait Foreign Petroleum Exploration Company, Woodside Petroleum and Kyushu Electric Power Company, has committed more than $250 million to social and critical infrastructure in Onslow including health, recreation and utilities.

Western Australia's government has also forked out about $70 million for local facilities.

Construction of the Onslow ring road took just a few months, having started last November.

WA state development minister Bill Marmion, who recently gave up the mines and petroleum portfolio to rising Liberal player Sean L'Estrange, hailed the opening as "important infrastructure" for the growing Onslow community, giving certainty to locals and visitors to the area, with access to be maintained even in cyclonic conditions.

"After extensive planning, new and upgraded facilities are being constructed, including the Onslow Shire Council administration centre and library, wastewater treatment plant improvements and housing for regional government officers," Marmion said.

While Chevron is spruiking the benefits of the new road as being mainly for the community, there will be some of its operational workforce living in the town.

For now, the Wheatstone - located 12km west of Onslow - is still within the ‘peak construction' period where approximately 6000 workers are involved, including service providers.

"Following cyclones, the previous road was prone to flooding from storm surges which hampered emergency services and prevented evacuations from occurring," WA transport minister Dean Nalder said.

"To overcome this seasonal problem, the new road is constructed on an elevated alignment."

The National Offshore Petroleum Safety and Environmental Management Authority refused Chevron's Wheatstone project start-up and operations environment plan earlier this month, not being satisfied it was sufficiently robust.

Chevron says its second refusal is merely part of the usual process of securing approvals under the NOPSEMA regime.

Macquarie Group said a month earlier that Wheatstone's price tag could soar 14% to $US33 billion after the project's start date was delayed by about six months.

Waste services tendered

Tox Free Solutions has also revealed that an expression of interest process is underway for the provision of waste management services for the operational phase of Chevron's WA assets.

Toxfree is providing waste services to the Gorgon project under a contract till 2020.

The five-year contract, announced in 2013, was expected to generate $A170 million in revenue over its life, with capital expenditure of $18 million over the same period.

"Toxfree believes it is well positioned to participate in, and put forward, a competitive bid in the formal tender process with the objective to continue its role as the waste services provider," Toxfree company secretary David McArthur said in a statement.

"Over the last six months, Toxfree has also worked to drive productivity and cost improvements. Toxfree has a strong track record and it looks forward to participating in the tender process."

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