Contractors Unlimited

Bechtel Awarded $40M FEED Contract at
Gladstone LNG in Australia

Bechtel Santos and Petronas today announced the appointment of Bechtel as the Front End Engineering Design (FEED) contractor for the downstream components of Gladstone LNG™ (GLNG™).

The GLNG™ project involves the construction of an initial nominal 3.5 million tonne per annum LNG liquefaction plant utilising the ConocoPhillips Optimized Cascade™ Process on Curtis Island in Gladstone Harbour, with gas supply from the Santos/Petronas coal seam gas fields in South East Queensland.

Bechtel's appointment follows a competitive 6-month dual pre-FEED process. The FEED contract value is approximately US$40 million and covers FEED on the liquefaction plant and associated infrastructure on Curtis Island. FEED will formally commence early in the New Year.

A final investment decision is expected in the first half of 2010. The project remains on schedule for first shipments of gas in 2014.

Over the next year, as part of FEED, GLNG will be progressing the engineering design to ensure construction can commence as scheduled in 2010.

Santos previously estimated total project costs at A$7.7 billion, based on 2007 dollars and prevailing economic conditions, including industry costs and exchange rates. The FEED studies commencing in 2009 will re-estimate these costs based on prevailing economic conditions, industry cost trends, regulatory requirements and an enhanced understanding of the integrated project scope.

Bechtel has built 9 LNG trains internationally using the ConocoPhillips Optimized Cascade™ Process, including the successful Darwin LNG project. Bechtel has extensive Eastern Australian construction experience including the Yarwun alumina refinery in Gladstone.

Posted 22/12/08

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