LNG (LIQUIFIED NATURAL GAS)

John Holland wins more Wheatstone work

CONTRACTING activity for Chevron's Wheatstone project has reached a frenzied pace, with onshore e...

John Holland wins more Wheatstone work

The $240 million contract for the design and construction of 12 permanent buildings essential to the operation of the offshore gas processing facilities was awarded to John Holland.

The contract win is the second John Holland has secured in recent weeks for Wheatstone, located at Ashburton North about 12km west of Onslow in Western Australia.

Earlier this month, John Holland won a $370 million contract from Bechtel to design and construct the accommodation village for the project.

"We are pleased to have won this work on the back of the contract to design and build the Wheatstone accommodation village, announced earlier this month," John Holland group managing director Glenn Palin said.

The 12 permanent buildings to be constructed include an operations building, laboratory, maintenance centre, vehicle maintenance shop, fire station and plant warehouse.

Six smaller ancillary buildings will also be built.

John Holland western region general manager Adam Harry said the timing of the permanent buildings would allow the company to deliver additional benefits to Bechtel and Chevron.

"There are synergies to be gained by the concurrent delivery of the accommodation village and permanent buildings on Wheatstone, as well as work on non-process infrastructure on the Gorgon project," he said.

"We are looking to move people from our Gorgon contract - which has similarities to the permanent buildings work - and tap into this experience on Wheatstone."

About 340 jobs will be created for the contract, with John Holland saying local suppliers and specialist contractors will have the opportunity to provide goods and services.

Ground was officially broken at the Wheatstone site earlier this month and preliminary site works are underway.

Along with the John Holland contracts, Bechtel also penned a $70 million contract to Monadelphous to provide general construction services, while Kencana Petroleum secured a 1 billion ringgit ($A314 million) contract to fabricate and load process equipment modules.

Another contract awarded for Wheatstone this month was a $60 million contract to Thiess to build a 1.2km tunnelled shore crossing under the ocean.

Wheatstone consists of two LNG trains that will have total production capacity of 8.9 million tonnes per annum of LNG.

It also includes a domestic gas plant.

First LNG is expected in 2016.

Partners in Wheatstone are Chevron (73.6%), Apache (13%), Kufpec (7%) and Shell (6.4%).

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