Leighton Contractors wins gas gathering work for Australia Pacific LNG

9/30/2015

CIMIC Group’s construction company, Leighton Contractors, has been awarded a contract by Origin Energy's Australia Pacific LNG (APLNG) to deliver gas field development works in the Surat Basin, Queensland, officials announced on Wednesday.

The collaborative well delivery (CWD) project is expected to generate revenue of approximately $300 million to Leighton Contractors over two years.

“We are delighted to see the partnership between Leighton Contractors and APLNG extend into the sustain phase," said David Baldwin, CEO of Origin’s gas and LNG business. "The CWD project represents significant savings of 45% per well connected for APLNG relative to wells delivered during the construction phase of the project, in addition to aligning Leighton Contractors and APLNG around an ongoing continuous improvement program that leverages the experience of both partners.”

Under the contract, which has an additional two-year option, Leighton Contractors is expected to deliver approximately 200 wells per year in a series of work packages.

“This contract extends the upstream infrastructure we have delivered for APLNG in the past three years," said Román Garrido, managing director of Leighton Contractors. “Our team’s experience with managing the complex interfaces across design, construction and commissioning and ongoing collaboration with our client will ensure new assets are integrated effectively and deliver value to APLNG operations.”

The CWD project supports APLNG’s ongoing upstream operations and supply to its LNG export facility on Curtis Island, post the construction phase, which is largely complete.

“The CIMIC Group and Leighton Contractors’ significant gas sector experience enables us to provide high-value solutions for clients who are developing major gas infrastructure and transitioning to long-term sustaining operations," said CIMIC CEO Marcelino Fernández Verdes.

"Our diverse capabilities and ability to consistently deliver to client requirements provide a range of opportunities for us in this sector," he added.

Leighton Contractors will deliver the project with design partner Amec Foster Wheeler, who have been designing upstream linear infrastructure for APLNG for the past four years.

Local subcontractors, suppliers and personnel from the Western Downs region will deliver at least 15% of the project works.

The project’s planning phase for the first project works package is underway, and construction works are expected to commence in early October 2015.