SNC-Lavalin wins Australian upstream asset contract

Engineering company SNC-Lavalin has secured a contract to provide an operations and maintenance workforce for Shell Australia’s QGC upstream natural gas producing asset in Queensland.

The QGC venture is focusing on developing onshore gas reserves in the Australian state. It has supplied the domestic market since 2006 and international customers since 2014.

QGC produces natural gas from wells drilled into coal seams in the Surat Basin. Its operations include more than 2,600 production wells, 24 field compression stations, six central gas processing plants (CPP), two water treatment plants, a two-train LNG export facility on Curtis Island, five sales stations and one power station.

Under the three-year contract, SNC-Lavalin will provide up to 300 personnel to continue QGC’s existing operation and maintenance programme.

The contract also requires SNC-Lavalin to provide personnel to support QGC operations and the maintenance of 2,500 wells, as well as the 450km pipeline linking the CPPs to the LNG liquefaction facility.

The first workers will be supplied in the fourth quarter of this year, with workforce numbers expected to peak in December.

SNC-Lavalin president of resources Craig Muir said: “This contract win is aligned with the company’s new strategic direction to focus on engineering and consulting services. Providing flexible value-driven solutions for our clients is where our strength lies, and we look forward to ensuring the safe and successful operations of Shell’s QGC venture.”

SNC-Lavalin started working on the QGC venture in 2012, offering integrated commissioning and start-up services for the upstream facilities. This was completed in the second quarter of this year.

Shell operates and holds a majority interest in the QGC venture. Its partners in the LNG plant on Curtis Island are CNOOC and Tokyo Gas.

QGC said it is committed to developing partnerships with local farmers and communities. It has so far signed more than 2,100 voluntary access agreements with landholders.

The contract has an extension option of up to one year.