AIE awards PKGT construction contract

Australian Industrial Energy (AIE) has awarded the wharf facility and pipeline construction contract for the Port Kembla Gas Terminal (PKGT).

A joint venture (JV) comprising Spiecapag and Soletanche Bachy was awarded the construction contract, which includes dredging, the construction of a new wharf within the existing Port Kembla dock and a pipeline to connect the new facility to the east coast gas network at Cringila, New South Wales.

AIE expects approximately $76 million of subcontracting work to become available to local businesses from the LNG import terminal’s construction, including in areas such as demolition, concreting, welding, electrical works, steel reinforcement traffic management, surveying and other goods and services.

Spiecapag Managing Director John Walsh said the company was pleased to be working on project of such importance to NSW.

“Part of our DNA is to work with local businesses, and we look forward to exploring opportunities for local contractors to also play a part in Australia’s first ever LNG import terminal once we start construction in the second half of the year,” he said.

The $250 million PKGT was granted development consent from the NSW Government in April this year and last month announced EnergyAustralia as its first customer.

AIE will provide EnergyAustralia with at least 15 PJ of gas per annum for five years from 2021, in a move that was a major step towards a final investment decision (FID) for the project.

Construction is expected to commence as soon as an FID is made, which is anticipated for later this year, with a completion date aimed for late 2020.

AIE is a consortium of Squadron Energy, Marubeni Corporation, and a JV between Tokyo Electric and Chubu Electric.

Squadron Energy is led by prominent Western Australian businessman and billionaire Andrew Forrest.

For more information visit the AIE website.

If you have company news you would like featured in The Australian Pipeliner contact Assistant Editor David Convery at dconvery@gs-press.com.au

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