Clough, the original contractor for the BassGas project, is facing a lawsuit from operator Origin, which is claiming for delays and plant defects.

BassGas was fully commissioned in mid-2006, two years behind schedule and during that time the development’s budget blew out from the original $450 million to about $750 million.

Clough maintains it is not responsible for delays. It has argued that changes imposed by Origin are responsible for the hold-ups and the late discovery of mercury in the Yolla gas stream has created problems for the project.

Origin and its joint venture partners had previously raised a claim of roughly $90 million, against which Clough had counterclaimed for about $93 million.

The arbitrator’s decision is anticipated in the first half of this year. Clough has said it remains committed to vigorously pursuing its case in the arbitration. Origin has declined to comment while arbitration is continuing.

The BassGas joint venture comprises Origin (with a 42.5% equity), Australian Worldwide Exploration (30%), CalEnergy (15%) and Arc Energy (12.5%).