Thiess wins $1.8bn QCLNG contract

Coal seam gas producer QGC has awarded Thiess a $1.8 billion contract to construct gas compression facilities and associated works for the QCLNG project in the Surat Basin.

The new contract significantly expands Thiess’s role in the project, which now includes construction of all 18 Field Compressor Stations (FCS) and four Central Processing Plants (CPP), with works to be completed by November 2014. The new contract replaces and expands the $325 million agreement signed in February 2012 for construction of six FCSs and one CPP.

Signing the contract with QGC’s QCLNG Project Director Mitch Ingram, Thiess Managing Director Bruce Munro paid tribute to the relationship established between the two companies.

“Thiess is proud of the strength of that relationship and the value we bring to the QCLNG project through the depth of our expertise in LNG and our ability to manage the logistics of this contract over such a vast geographical area,” Munro said.

Leighton Holdings’ Chief Executive Hamish Tyrwhitt said that the enormous investments being made in the development of new coal seam gas (CSG) fields and LNG capacity in Australia were driving a diverse range of opportunities for Thiess and the other operating companies within the Leighton Group.

“Our operating companies have developed a high degree of competency in delivering essential infrastructure for these large resources projects; and in the future, we will look to export those core capabilities into new geographies as other LNG and CSG opportunities emerge,” Tyrwhitt said.

Thiess is currently ramping up its workforce in the Surat Basin to a forecast peak of 2600 by early 2014. The new contract expands the geographic range of the works from sites near Dalby and Miles to now also include compression facilities near Chinchilla and Wandoan.

Munro commended the economic benefits of the QCLNG project and noted that both Thiess and QGC are committed to sharing those benefits with the local region.

“Thiess has so far entered into contracts worth around $64 million with local Queensland companies to supply a range of services in the Surat Basin,” Munro said.

“Thiess was founded on the Darling Downs nearly 80 years ago and we’re thrilled to be back working in the region and providing support to local community groups.”