Go-ahead given for Gladstone gas project

01 May 2008

Laing O’Rourke has entered the high-growth liquefied natural gas (LNG) market, having been awarded a Pre-Construction Services Agreement by Gladstone LNG Pty Ltd (fully owned by Liquefied Natural Gas Ltd) for a $US400 million LNG project at Fisherman’s Landing in Gladstone, Queensland.

The agreement is similar in form to an early contractor involvement delivery methodology and relates to the design and construction phases of LNG storage of 200,000m³ in capacity.

Infrastructure Development Manager Michael Schaumburg said the LNG plant would have an initial design capacity of 1.3 million tonnes of LNG a year, with provision to expand to 2.6 million tonnes a year.

He said Laing O’Rourke was selected without a competitive process for the project based on the company’s knowledge of the approvals processes for such projects, a competitive budget price and program for the works and a range of value engineering opportunities provided to the client.

“Our global experience and reputation in building complex concrete structures, as well as our proven delivery of some of the world’s flagship infrastructure projects, also contributed to winning this project,” Michael said.

It is envisaged that construction will commence in early 2009 and will be completed by 2011.

There is also an opportunity for Laing O’Rourke to undertake the balance of the plant construction for the LNG liquefaction facility that comprises the remainder of the project scope.

Michael said the Gladstone project was one of four LNG projects in which Laing O’Rourke was interested.

“We’ve made a concerted effort to position ourselves with two LNG projects and we are contemplating our strategy for our involvement in the remaining two,” he said.

“The demand for LNG, particularly in the Asia Pacific region, is increasing significantly so it is a great time to be entering this niche market.”