Downer Wins $400 Million Electrical and Instrumentation Contract for Wheatstone LNG Project

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Researched by Industrial Info Resources Australia (Perth, Australia)--Downer Infrastructure, a division of Downer Group (ASX:DOW) (Sydney, Australia), has won a new electrical and instrumentation contract on the downstream component of Chevron Corporation's (NYSE:CVX) (San Ramon, California) Wheatstone Liquefied Natural Gas (LNG) project.

Bechtel Corporation (San Francisco, California), a downstream engineering, procurement and construction (EPC) contractor, awarded the $379.77 million (AU$400 million) contract to Downer on November 1, 2013. Downer will mobilize to the site in the fourth quarter of 2014. The company will create about 600 jobs, with functional support roles and administrative positions in the Perth office, along with the multitude of on-site roles.

"We are delighted to have been awarded the E&I packages on one of Australia's largest resource projects and to create employment opportunities within Australia," said Downer CEO Grant Fenn.

"Downer is Australia's leading E&I contractor, and these contracts will help us to build on our proven track record in oil and gas. We have a strong working relationship with Bechtel and look forward to working with them to deliver this important project."

The full scope of work includes the installation of electrical, control and instrumentation cabling; cable support systems; major electrical equipment; general lighting and power; and installation and calibration of instruments. Downer will provide pre-commissioning works, plus commissioning and start-up assistance to Chevron and Bechtel.

The Wheatstone LNG Production Plant will be operational in 2016 and will supply 8.9 million metric tonnes of LNG per day during the foundation phase, with expansions of to up to 25 million metric tonnes of LNG per day in future. The Wheatstone LNG plant, natural gas processing plant and associated infrastructure is being built at the Ashburton North Industrial Precinct, near the town on Onslow in Western Australia's North West.

The Wheatstone project equity participants are operator Chevron, along with Apache Corporation (NYSE:APA) (Houston), Kuwait Foreign Petroleum Exploration Company (KUFPEC), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), Kyushu Electric Power Company (TYO:9508) (Fukuoka, Japan) and PE Wheatstone Proprietary Limited (PEW).

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