CB&I Kentz Joint Venture Nets $2.3 Billion Contract for Gorgon Project

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Researched by Industrial Info Resources Australia (Perth, Australia)--CB&I Kentz Joint Venture (CKJV) has been awarded a $2.3 billion mechanical, electrical and instrumentation contract by Chevron (NYSE:CVX) (San Ramon, California) for the Gorgon project on Barrow Island, Western Australia.

The joint venture between Chicago Bridge & Iron (NYSE:CBI) (CB&I) (The Hague, Netherlands), which holds 65%, and Kentz Corporation Limited (LSE:KENZ) (Tipperary, Ireland), which holds 35%, won out over the UGL and Downer Group joint venture; both consortiums formed around September 2010 to bid for the massive contract. The scope of the contract is comprised of structural, mechanical, electrical, instrumentation and commissioning support for the construction of the three-train, 15 million-metric-ton-per-year liquefied natural gas (LNG) plant and the domestic gas processing and compression plant.

Work has commenced at the Australian Marine Complex in Henderson, with CKJV to mobilize to the site by end of second-quarter 2012. Contract completion is scheduled for 2015. This is the biggest contract awarded on the Gorgon project to local industry, and it will create an estimated 1,650 jobs for West Australian construction personnel.

CB&I and Kentz are performing additional work on the Gorgon project. CB&I was awarded the contract for the engineering, procurement, fabrication and construction of two 180,000-cubic-meter, full-containment LNG tanks; four condensate tanks; and the associated utilities. In June 2009, Kentz was awarded the contract to design and construct the Gorgon 3,300-person construction village, along with Australian joint venture partners Decmil (ASX:DCG) (Perth, Australia) and Thiess (Brisbane, Australia), which is a subsidiary of Leighton Holdings (ASX:LEI) (Sydney, Australia). In August 2009, Kentz was awarded a telecommunications package, inclusive of design, supply, installation, testing and commissioning of the telecommunications on Barrow Island. Kentz also was awarded a subcontract by site preparation contractor, Thiess. Kentz's scope of work under Thiess includes the underground cabling, earthing and terminations for the temporary facilities.

View Project Report - 200001234 86000906 300013687 86000928 200001486 300014045

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