Clough Downer Joint Venture Wins Gladstone LNG Gas Field Construction Subcontract

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Researched by Industrial Info Resources Australia (Perth, Australia)--A $590 million contract for infrastructure on the Gladstone LNG project was awarded to the Clough Downer Joint Venture (CDJV), an equal share partnership, on September 15, 2011. Clough Limited (ASX:CLO) (Perth, Australia) is highly involved in the Oil & Gas and metals & Minerals industries in Australia and Southeast Asia, with expertise in engineering, procurement, construction and project management. Clough has recently established a specialized Coal Seam Gas (Coal Bed Methane) division in Queensland, Australia. Downer EDI Limited (ASX:DOW) (Sydney) provides integrated solutions for infrastructure in the Metals & Minerals, Oil & Gas, Power, water, transport and communications industries.

The Gladstone LNG project, owned by Santos (ASX:STO) (Adelaide, Australia), Petronas Gas Berhad (KUL:PETGAS) (Kuala Lumpur, Malaysia), Total SA (NYSE:TOT) (Paris, France) and Korea Gas Corporation (KOGAS) (SEO:036460) (Seoul, South Korea), includes gas field facilities, a two-train LNG plant on Curtis Island and a 435-kilometre (270-mile) pipeline to transport natural gas from coal seam gas fields to the LNG plant.

The Clough Downer Joint Venture will construct 400 kilometres (250 miles) of infield gas and water transmission pipelines, two compression facilities and an 800-person camp. The scope of work will also entail expansion of the existing compression facilities. A construction workforce of approximately 650 personnel will be required by the joint venture at the peak construction phase.

Fluor Corporation (NYSE:FLR) (Irving, Texas) is the engineering, procurement and construction (EPC) contractor for the upstream works of the Gladstone LNG project, inclusive of the three Coal Seam Gas 'hubs' in the Surat and Bowen basins. One hub will be based in the Roma Coal Seam Gas Fields, and the CDJV subcontract awarded by Fluor involves the two hubs in the Fairview fields. The entire upstream component of the GLNG project is made up of wellhead facilities, gas and water gathering lines, water storage, desalination and processing facilities, gas compression, power generation and associated infrastructure, including roads, power distribution networks, and camp and office buildings.

Clough and Downer will report to Fluor under the subcontract agreement.

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