NW Shelf Awards LNG Train 4 Steel Contracts

The North-West Shelf Expansion Project announced the award of two major contracts totaling A$16 million for 6800 tons of fabricated steel for the LNG Train 4 Project. The contracts, awarded by the Kellogg Joint Venture, on behalf of NWS Operator Woodside, were awarded to Western Australian companies Fremantle Steel Fabrication Co. of Jandakot and Park Engineers Pty Ltd of Welshpool.

Fremantle Steel was awarded a A$9 million contract to provide 4000 tons of steel, while Park Engineers were awarded a A$7 million contract to supply 2800 tons.

The fabrication contacts are some of the biggest awarded in recent years to WA fabricators. First fabricated steel is required at the North-West Shelf site by March 2002 to coincide with the mobilization of the mechanical erection workforce.

The WA companies won the contracts against a field of Australian and international tenders. To date, Australian companies have won more than A$320 million in contracts for the Project. This is expected to climb to near A$1 billion by the time the Project is completed in 2004. "This is another great result for WA fabricators against a field of very competitive tenders from both Australia and overseas," said Manfred Henze, General Manager Onshore Expansion Projects. "Work generated by the Project will have a significant impact on an industry which has suffered mixed fortunes in recent years. Over the next two years the Project will account for a substantial part of production from major Australian fabrication shops."

"The Train 4 project provides the biggest impetus to this industry since the initial LNG development. It will directly and indirectly employ a significant proportion of Australia's fabrication trades both in workshops and on site." Mr. Henze said the big challenge facing successful Australian contractors was meeting the volume of product required by the Project's tight construction schedule.

"LNG Train 4 is twice the capacity of any of the existing production plants and requires significantly more steel and bigger pieces of equipment than we have ever seen before," Mr. Henze said. "However, we are confident that all parties can meet the challenges." The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd. as operator; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; BHP Billiton Petroleum (North West Shelf) Pty Ltd; Japan Australia LNG (MIMI) Pty. Ltd; and Shell Development (Australia) Proprietary Limited.