Santos Gladstone LNG Project Update

The Clough Downer Joint Venture has been awarded the infrastructure construction contract for Santos’ GLNG project in the Surat Basin in Queensland.

Valued at $600m, the contractor build more than 400 kilometres of gas and water transmission pipelines, and two compression facilities, as well as an 800 person camp.

Expansion of the existing Fairview compression facilities also forms part of the scope.

Construction work is due to commence this month, and at the peak of the project will employ a workforce of 650.  Jobs will including trades, labour and engineering.

CDJV is a 50:50 joint venture between Clough and engineering and infrastructure management services group, Downer Australia (Downer).

ABOUT GLADSTONE LNG (GLNG)

Operators:  60% owned by Santos (also the operator) and 40% by Petronas

Location: Gladstone

Timeframe:  FID expected in mid 2010 and first gas production expected for mid 2014

Cost:  $7.7b

Employment: The project is expected to employ 5,000 people during construction and 1,000 during operation.  At its peak – likely 2011 - it is expected to employ around 3,000 people.  Santos has already recruited more than 150 professional roles to commence the next phase and opened a start-of-the-art office in central Brisbane.  In October 2009, Santos announced a plan to generate up to 100 new apprenticeships and trainee positions to help deliver the project.  Initial positions will be in the Roma region in the State’s south west, and in Gladstone in Central Queensland.  Training will be rolled out over the next five years and includes $16m for 100 new diesel mechanics, electricians and electrical instrument apprentices and traineeships in plant operations, together with a $4m indigenous training package to support indigenous GLNG jobs (direct and indirect).

Status: The project was approved for construction in early 2011.  Work is already underway at GLNG’s mainland sites in the Port of Gladstone with the construction of the temporary and permanent logistics facilities.  Contracts worth more than $700 million have been let to Australian suppliers in past six months and Government approvals have been received for clearing, earthworks, dredging and marine construction work in Gladstone.  Plant contractor Bechtel has already issued contracts worth over half a billion dollars, gas transmission pipeline contractor Saipem has commenced mobilisation and preliminary survey work, and the upstream surface facilities contractor Fluor has begun detailed engineering work.

Read the approval announcement blog here: http://www.theresourcechannel.com.au/blog/santos-approves-major-glng-project

Santos is currently advertising the role of <b>Manager Drilling and Completions:</b> http://www.theresourcechannel.com.au/job/general-manager-drilling-and-completions