Clough Sea Trucks JV awarded DOMGAS contract for Gorgon

Engineering and construction company Clough Limited (ASX:CLO), today announced that Chevron Australia has entered into a contract valued at approximately A$300 million with the Clough Sea Trucks Joint Venture (CSJV) for the Domestic Gas (DOMGAS) scope of work on the Gorgon Project.

CSJV is a joint venture between Clough and Sea Trucks Australia established for the purpose of tendering and executing a variety of offshore works on the Gorgon Project. Participating interests vary from scope to scope.

The work involves the transportation and installation of approximately 90kms of 20 inch pipeline, both offshore and onshore, from Barrow Island to the Dampier Bunbury Natural Gas Pipeline. Clough will carry out project management and installation engineering (including HSE, quality and quarantine management) from their headquarters in Perth. Clough’s derrick pipe lay barge, Java Constructor, will be utilised for pipeline installation together with Clough’s shallow water laybarge, Clough Challenge. The onshore cross country portion of the pipeline will be self executed by Clough, supervised by resources from its Clough Seam Gas division.

Engineering and procurement will commence immediately with site works expected to commence and be completed in 2012.

"As an Australian company headquartered in the West, Clough is proud to be chosen for the Gorgon DOMGAS project," said Clough’s CEO John Smith.

"I am pleased for our Marine Construction team who have put in an enormous effort over the past 15 months to secure this substantial contract which underpins backlog through the 11/12 financial year."

The Gorgon Project is one of the world's largest natural gas projects and the largest single resource natural gas project in Australia's history. It is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

The project will develop the Greater Gorgon Area gas fields, located about 130 kilometres off the north-west coast of Western Australia. It includes the construction of a 15 million tonne per annum (MTPA) Liquefied Natural Gas (LNG) plant on Barrow Island and a domestic gas infrastructure capable of delivering 300 terajoules per day to supply gas to Western Australia.