Woodside Energy reported Monday that it has awarded a supply and fabrication contract to Western Australia-based engineering firm Civmec for the Pluto-Karratha Gas Plant (KGP) Interconnector project.
Under the contract, Civmec will carry out the fabrication of structural steel, piping, a module and skids within the Pluto LNG Plant, Woodside noted in a written statement. Woodside called the contract award “a significant step forward” for its Interconnector project, which will transport gas from Woodside’s Pluto LNG facility to the North West Shelf Project’s KGP via a 3.1-mile (5-kilometer) pipeline. The new pipeline will be built within the existing Dampier to Bunbury Natural Gas Pipeline corridor, the Perth-based company added.
“The Interconnector has the potential to create opportunities to take advantage of future excess capacity at KGP,” stated Woodside. “It will also provide the potential to accelerate future developments of Pluto gas reserves, as well as third-party resources.”
Last November, Woodside revealed that it had reached a final investment decision on the pipeline component of the Interconnector. Also, it had announced a contract with Australian Gas Infrastructure Group unit DDG Operations Pty Ltd. to construct the pipeline and provide ongoing operation and maintenance.
Woodside stated Monday that construction and operation of the Interconnector pipeline hinge on State of Western Australia regulatory approvals and commercial arrangement finalization with the Pluto and North West Shelf joint venture participants. Pluto JV members include Woodside (operator, 90-percent interest), Kansai Electric (five percent) and Tokyo Gas (five percent). The North West Shelf participants – each of which owns an equal share – include Woodside, BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd and Shell Australia Pty Ltd.
“It is expected construction of the piping and modules will support around 40 local jobs and run for approximately seven months, commencing in 2020,” noted Woodside, which is targeting a 2022 Interconnector start-up.
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