CBI appointed to Gladstone LNG

There are essentially two major LNG projects in the planning for Gladstone – unfortunately both are often referred to with the same moniker; Gladstone LNG. The first is being developed by Santos and Petronas and the second by Liquefied Natural Gas Limited, which only listed on the Australian Stock Exchange in September 2004. LNG Ltd’s project is also otherwise known as the Gladstone Fisherman’s Landing LNG Project.

In May 2006 Golar LNG became the company’s largest corporate shareholder with 16% and in December 2007, Arrow Energy became the second with 9.7%.

On 15 September, LNG announced commencement of the Front End Engineering Design (FEED) for the second train. The first train FEED, being undertaken by SK Engineering & Construction Company of Korea and Laing O’Rourke Australia Construction is nearing completion. The second train FEED will be based on the same design as the first train, which means it can be completed in a much shorter period and at minimal cost, enabling LNG to leverage the availability of gas for 2012/13 with increased production.

Subject to finalising agreements with Gladstone Ports Corporation, it remains their intent to commence early works at the Fisherman’s Landing site during October.

In preparation, LNG has appointed CB&I as Project Management Consultant. An American company, CBI Constructors Pty Ltd (Chicago Bridge and Iron Company) were founded in 1889 and as the name suggests, were originally focussed on bridge design and construction. Now, with around 18,000 employees in more than 60 locations world-wide, CB&I are one of the world’s leading engineering, procurement and construction (EPC) companies, specialising in lump-sum, turnkey projects.

In recent years, they were awarded a contract valued in excess of US$373m by Woodside for the engineering, procurement and construction and pre-commissioning of two 120,000 cubic metre full containment LNG storage tanks, three condensate tanks and associated civil, piping, electrical and instrumentation work for their Pluto LNG Project. This work is still ongoing and CB&I has recently engaged Giovenco (see separate blog) to undertake work.

On the Fisherman’s Landing LNG project, they will provide engineering, technical and construction personnel during the construction phase.

Whilst they have an office in Brisbane (10 Eagle Street, Brisbane, phone 07 3014 5500), their website offers no clue on when and how recruitment will occur at this stage but we will advise as soon as this changes.

For more information on the project, http://www.lnglimited.com.au/IRM/content/home.html