Queensland Curtis LNG Project Awards AJ Lucas, Spiecapag Joint Venture Trunkline Installation Contract

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Researched by Industrial Info Resources Australia (Perth, Australia)--Queensland Gas Company (QGC) (Brisbane, Australia), a subsidiary of BG Group (LSE:BG) (London, England), has awarded an $85.5 million trunkline installation contract to a 50:50 joint venture between Spiecapag (Colombes Cedex, France) and AJ Lucas (ASX:AJL) (Macquarie Park, Australia).

The scope of the contract includes the installation of 53.6 kilometres of natural gas pipeline, 24.5 kilometres of water pipeline, and high-voltage power and fibre optic cable in coal-seam gas fields. The work is to be in the northern region of QGCs's Queensland assets, which are under development as part of QGC's massive Queensland Curtis LNG (QCLNG) project.

QGC, along with major contractors, has been progressing with construction of the overall project since 2010. The QCLNG project will be the first natural gas liquefaction facility to convert coal seam gas to LNG. Production will begin in 2014 from the two-train foundation development. A potential expansion to 12 million metric tonnes of LNG per year has been given regulatory, and the Queensland government has granted development approvals to go ahead.

Spiecapag and AJ Lucas have worked together previously in Australia. The consortium performed detailed engineering, design, construction and commissioning on the 686-kilometer SEA Gas pipeline in South East Australia. AJ Lucas has a number of big contracts under its belt, and many work scopes are currently under way on the Aussie LNG projects. Spicapag won a lucrative contract for ExxonMobil's (NYSE:XOM) Papua New Guinea project.

"We are very pleased to have been awarded this contract, which recognises our significant experience and long-standing capability in the delivery of pipelines in Central Queensland," said Alan Campbell, the chief executive officer of AJ Lucas.

"We are also particularly pleased to be again working with Spiecapag, one of the world's largest pipeline installation companies, with whom we have previously worked on similarly significant projects."

AJ Lucas and Spiecapag will perform the scope of work from the end of July through March 2014.

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