Australian construction JV wins onshore work for Ichthys gas project

Australian construction companies Macmahon Holdings and John Holland have received a $340m contract to build onshore facilities for the proposed Ichthys LNG project in Darwin, Australia.

The 50:50 JV will deliver the contract for JKC Venture, the engineering and procurement contractor for the project, comprising of JGC Corporation, global engineering firm KBR and Japan’s Chiyoda Corporation.

The Macmahon JV will undertake all the civil construction works including earthworks, drainage and ground improvement works for the establishment of the Ichthys LNG plant and associated facilities.

Macmahon chief executive officer Nick Bowen said the Ichthys LNG project is a key driver of the Northern Territory’s economic future.

"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," added Bowen.

Preliminary work on the project will commence immediately with site works starting next month.

Gas from the Ichthys Field in the Browse Basin, Western Australia will undergo preliminary processing offshore to remove water and extract condensate.

The gas will be exported through an 889km subsea pipeline to onshore processing facilities in Darwin.

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.