Australian Industrial Energy (AIE) has awarded a key wharf facility and pipeline construction contract for its Port Kembla Gas Terminal (PKGT).
The contract was awarded to the SCSB joint venture which comprises Spiecapag and Soletanche Bachy.
As explained, the companies are international specialists in the core construction works required to build the PKGT wharf facility and pipeline connection to the Cringila Eastern Gas Pipeline connection point just six kilometers from the wharf.
AIE is spearheading action to help New South Wales businesses obtain reliable supplies of gas beyond 2020 by building a natural gas import terminal at Port Kembla near Wollongong. The PKGT will have the capacity to supply over 70% of NSW’s natural gas needs.
The award of the contract follows the NSW State Government’s decision to grant development consent for the AUD 250m project in April 2019 and AIE welcoming its first customer, EnergyAustralia, which has committed to a five-year contract of at least 15PJs of gas per annum from 2021.
Planning design is underway for the PKGT and construction will commence immediately after the AIE joint venture partners complete their Final Investment Decision which is expected later this year, according to AIE.
Construction work will include dredging, a new wharf within the existing Port Kembla dock and the pipeline to connect the new facility to the east coast gas network at Cringila. The project will provide work and subcontracting opportunities, with an estimated AUD 76 million being sub-contracted to local businesses.
“We’re very pleased to be working on such a strategically important project for NSW… 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,” John Walsh, Spiecapag’s Managing Director, said.