15-03-2012
Macmahon JV awarded $340 million Ichthys onshore LNG facilities site development contract
Macmahon Holdings Ltd, in a 50:50 joint venture with John Holland, has been awarded the contract for site development civil works for the onshore facilities for the Ichthys LNG Project near Darwin.
The contract, worth $340 million, consists primarily of earthworks, drainage and ground improvement works for the establishment of the landmark Ichthys LNG Project.
The Macmahon John Holland Joint Venture was awarded the contract by the EPC contractor JKC Joint Venture (JGC Corporation, KBR, Chiyoda Corporation), following the final investment decision for the project by Ichthys joint venture participants INPEX (Operator) and Total on January 13, 2012.
The site development works, will see the Macmahon John Holland Joint Venture undertake all the civil construction works to deliver the finished earthwork levels for the LNG plant and associated facilities. The works include access roads, earthworks, drainage and ground improvement. Early works on the project will commence almost immediately with site works starting in early April 2012.
Macmahon Chief Executive Officer Nick Bowen said the Ichthys LNG Project is a key driver of the Northern Territory’s economic future and Macmahon would again help deliver essential infrastructure to help capitalise on this opportunity.
“Macmahon’s extensive connection to the Northern Territory was an important part of our success in securing this project,” Mr Bowen said.
“The Ichthys LNG Project win reinforces Macmahon’s strong reputation of being at the forefront of major infrastructure establishment for resources projects across Australia.
“Our locally based team and long-term presence in Darwin eliminate the need for a construction camp and directly support the client’s desire to maximise the use of Australian products and services,” he said.
“Key project management positions have already been filled and the timely completion of other projects will enable staff to transfer across as this project ramps up.”
“Macmahon has been part of the ongoing development of the Northern Territory and this award follows on from the recently announced Darwin Marine Supply Base construction contract, in addition to other significant projects including the Tiger Brennan Drive Extension, Darwin Waterfront Development, RAAF Base Darwin Fuel Farm, Larrakia Training Facility, Blacktip Gas Project and Darwin Cruise Ship Terminal.”
The Ichthys LNG Project is a joint venture between INPEX (76%, the operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin approximately 200 kilometres offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889km subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.
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