Construction contract granted for Port Kembla Gas Terminal

Australian Industrial Energy (AIE) has granted a key wharf facility and pipeline construction contract for the LNG import facility at its Port Kembla Gas Terminal (PKGT).

The Port Kembla Gas Terminal will have the capacity to supply more than 70% of New South Wales’s natural gas needs, thereby helping the state to ensure gas supplies beyond 2020.

The contract was awarded to the SCSB joint venture of Spiecapag and Soletanche Bachy.

The two companies have expertise in the core construction works required to build the terminal wharf facility and pipeline connection to the Cringila Eastern Gas Pipeline connection point, which is 6km away from the wharf.

The contract announcement comes after the Australian Government’s decision in April to grant development consent for the project.

Following the government’s decision, AIE signed an agreement with EnergyAustralia for the supply of 15PJ of natural gas per annum from its PKGT for five years.

The construction of the new wharf facility and pipeline will see subcontracts worth $76m awarded to local businesses in Illawarra.

Subcontracting works include demolition, concreting, welding, electrical works, steel reinforcement, traffic management and surveying services.

Construction of the $250m PKGT project is slated to commence immediately after the AIE joint venture partners finish their final investment decision, which is expected later this year.

AIE project director Keith Walker said: “The Port Kembla Gas Terminal is progressing strongly and is attracting the best of the best on all fronts.

“Our selection of SCSB as prime contractor is no exception and we look forward to them bringing their expertise together with the capabilities of the Illawarra region to deliver this most important of projects.”

Spiecapag managing director John Walsh said: “We’re very pleased to be working on such a strategically important project for New South Wales.

“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.”