Kellogg Brown & Root Awarded Australian Pipeline Contract

Kellogg Brown & Root has been selected to supply Phase 1 engineering, procurement and construction services for a new underground gas pipeline from the Port Campbell area in Victoria to Adelaide, South Australia.

The proponent is SEA Gas Pty Ltd, a new a 50/50 joint venture recently incorporated by Australian National Power and Origin Energy.

KBR's role includes Phase 1 engineering, pipeline flow simulation, development of specifications and tendering for the procurement and construction of the 660 km pipeline plus its associated compressors and meter stations. It also involves preparing a project cost estimate, and managing the work of sub-consultants engaged for regulatory and environmental approval processes, land acquisition and surveying.

At present, almost all of South Australia's gas is supplied by the Cooper Basin in Central Australia via the Moomba to Adelaide pipeline. When completed in early 2004, the $A250 million SEA Gas pipeline will bring gas to South Australia from the Otway Basin, considerably strengthening the state's energy infrastructure and providing security of supply for both existing and potential industrial expansion.

KBR Project Director John Prowse said that KBR's international track record in major onshore pipeline projects helped to clinch the contract. "SEA Gas had heard about the conceptual engineering we are currently carrying out for a multi-billion dollar, 2,800 km extension of the Alaska pipeline from Edmonton to Chicago," he said.

SEA Gas aims to achieve financial close by March 2002. A preferred corridor for the pipeline has been assessed and construction should commence in May 2002.