Industry Report – Projects

NORTHERN TERRITORYRESOURCESInpex LNG plant at Blaydin Point, Middle Arm (Proposed)Principal: InpexScope: 8Mtpa two-train LNG plant, 850km pipeline from Ichthys gas fieldStatus: Inpex says the complexity of front-end engineering and design will result in the company needing to push back its final investment decision to late 2010 or early 2011. Inpex was originally expecting to make a final investment decision in early 2010. First LNG remains on track for 2015Purpose: Develop Ichthys field in Browse Basin off WA with reserves of 12.8 trillion cubic feet of gas and 527 million barrels of condensate Contractors: FEED – JKC Joint Venture (JGC Corporation, KBR, Chiyoda Corporation)Value: $20 billion(Update: Inpex announcement of delay in making final investment decision, November 2009)NORTHERN TERRITORYWATEREast Arm Wharf, Darwin (Proposed)Principal: InfrastructureScope: Overland conveyor from bulk minerals storage to bulk loader on wharf, reclamation of land behind bulk loading facility known as pond F, upgrade and seal eastern reclaimed area on wharf to provide additional hardstand includes rail interchangeStatus: Contract awarded to transport first fill to port and for civil works onsite, November 2009Contractors: Sage Constructions (fill to port, site works)Purpose: Significantly increase Port of Darwin’s capacity, and confirm Darwin as significant transport and logistics centreValue: $150 million (Update: NT government announcement of award of tender, November 2009)NEW SOUTH WALESRAILMaldon-Dombarton Rail Link (Proposed)Principal: TransportScope: 35km rail line linking the Main South rail line (national network) at Maldon (near Picton in southwest Sydney) to existing 15km section of dual track from Dombarton to Port KemblaStatus: Tenders close on December 4, 2009, for independent consultants to conduct feasibility study which will take 18 months to complete, November, 2009Contractors: NAValue: NA(Update: Federal government call for tender, November 2009)QUEENSLANDWATERTraveston Crossing Dam, Mary River (Proposed)Principal: InfrastructureScope: 153,000 million litres water located 27km upstream of Gympie, in Mary River catchment. Status: Federal environmental approval denied for project on the grounds that there would be serious and irreversible effects on threatened species of lungfish, Mary River cod and bottom-breathing Mary River turtle. The government stated the area that would be flooded by this proposal was critical habitat for these species, November 2009. Queensland government announced that due to rejection of Traveston Crossing Dam, land would set aside for construction of new desalination plants at Lytton and Marocoola by 2017-18Purpose: Secure safe and reliable water supply for southeast QueenslandContractors: NAValue: $1.8 billionUpdate: Federal environment minister rejected Traveston Crossing Dam, November 2009QUEENSLANDWATERWivenhoe Dam-Toowoomba Pipeline (Current)Principal: Toowoomba Regional Council-LinkWaterScope: 38km underground pipeline to transfer water from Wivenhoe Dam near Brisbane to Cressbrook Dam near ToowoombaStatus: Pipelaying completed two months ahead of schedule; construction of pump station 70% complete; project operational and pumping water by January 2010Purpose: Supply 14,200 million litres of water per year from Wivenhoe Dam Contractors: Clough, Diversified Construction, Maunsell AECOM (design and build) Aconex (online collaboration system to streamline communication and information)Value: $187 million(Update: State government announcement of project status, November 2009)QUEENSLANDROADSForgan Bridge Replacement and Duplication, Mackay (Current)Scope: Replacement and upgrade to four lanes of Forgan Bridge connecting Sydney Street to Kooyong Intersection, Mackay. Stage 1 includes piling, construction of headstocks, final deck units and road surface works. Stage 2 includes demolition of existing Forgan Bridge and construction of new two-lane bridgeStatus: Final pile for stage 1completed, November 2009. Stage 1 completion April 2010. Stage 2 completion mid-2011Contractors: Golding Contractors.Value: $148 million(Update: State government announcement of project status, November 2009)SOUTH AUSTRALIARESOURCESOlympic Dam Expansion. 560km north of Adelaide (Proposed)Principals: BHP Billiton Scope: Mine, infrastructure, processing plant expansion to double production capacity possibly involving open pit mine, coastal desalination plant at Upper Spencer Gulf and pipeline, airport relocation, additional power transmission line or natural gas pipeline to onsite power generator, rail line to Pimba, road-rail transfer facility, export infrastructure at East Arm (Darwin), doubling of Roxby Downs townshipStatus: On October 6, 2009, an incident caused significant damage to operating equipment at Clark Shaft haulage system, which is responsible for 75% of mine’s ore production. Repair work to damaged equipment well advanced. Temporary equipment will be commissioned to allow repair work to commence inside Clark Shaft. Ore production is continuing via secondary Whenan Shaft, which is hoisting 25% of production. Trials will begin soon on trucking some ore to surface via existing decline. The temporary closure of Clark Shaft has enabled BHP Billiton to bring forward maintenance work originally scheduled for 2010, including major smelter reline, November 2009. Macmahon advises short-term changes have been made to its operation due the Clark Shaft incident, resulting in short-term reduction in scope of its underground work, November 2009. Final government decision on the expansion of Olympic Dam mid-2010Purpose: BHP considering five-stage expansion to increase capacity from 200,000tpa to 500,000tpa copper, 4300tpa to 19,000tpa uranium. The expansion centres on the creation of an open pit mine, which would lift ore production six-fold and require expanded minerals processing facilities. The open pit mine would operate simultaneously with the existing underground mine. New and expanded infrastructure, and facilities to accommodate an expanded workforce, would also be requiredContractors: Macmahon (underground mine development)Value: $6.7 billion(Update: BHP and Macmahon announcements of project status, November, 2009)SOUTH AUSTRALIARAILNoarlunga Rail Line Upgrade (Current)Principal: Transport, Energy and InfrastructureScope: Upgrade sections of Noarlunga line between Goodwood and Jetty Road, Brighton includes refurbishing/replacing rail and replacing wooden sleepers with gauge convertible concrete sleepersStatus: Construction commenced November 2009Purpose: Upgrade is first step towards electrification of Noarlunga line.Contractors: John Holland and Coleman RailValue: NA (part of $2 billion upgrade of public transport system) (Update: State government announcement of project, November 2009)SOUTH AUSTRALIARAILPrincipal: Transport, Energy and InfrastructureScope: Electrification of Adelaide’s metropolitan rail networkStatus: Expressions of interest being called for design, construction, operation and maintenance of electrified rail networkContractors: NAValue: NA (Part of $2 billion investment in public transport infrastructure)VICTORIAURBAN DEVELOPMENTHamer Hall Redevelopment, Southbank Cultural Precinct, Melbourne (Proposed)Principal: Arts Victoria, Major Projects VictoriaScope: New auditorium, improved acoustics, seating, staging, expanded foyers includes new connections to Central Melbourne, St Kilda Road and Yarra RiverStatus: Contract awarded, November 2009; construction commencing mid-2010Purpose: Overhaul professional and audience features of concert hall, open precinct to Yarra RiverContractors: Baulderstone (contractor); Ashton Raggatt McDougall (architects)Value: $128.5 million(Update: State government announcement of award of contract, November 2009)WESTERN AUSTRALIA ENERGYGorgon Gas Project, Barrow Island (Current)Principals: Chevron (50%), ExxonMobil (25%), Shell (25%)Scope: Gas field development, subsea pipelines to Barrow Island, three 5Mtpa LNG processing trains, LNG shipping facilities, 300 terajoule/day domestic gas plant, pipeline to mainland, carbon dioxide injection facilityStatus: Kellogg Joint Venture Group (KJVG) awarded contract to Mermaid Marine for provision of stevedoring and related services at projects North West Supply Base, November 2009Purpose: Develop Greater Gorgon gas field including IO/Janz field’s estimated 40 trillion cubic feet gas resource 130-200km off WA northwest coast with state’s largest LNG plant and domestic gas facilityContractors: EPCM, FEED – Kellogg Joint Venture Gorgon (KBR E&C Australia-JGC Corporation-Clough Projects Australia-Hatch Associates): Offshore Marine Services Alliance (Skilled Group, Singapore’s Ezion Holdings and Hong Kong-based Pacific Basin Shipping) to supply marine vessels and labour. TDK Group (Decmil Australia, Thiess, Kentz) construct village on Barrow Island, Nomad Modular Building to manufacture and supply central facilities buildings for construction village; MPower (28MW power plant); CB&I LNG Tanks, (LNG tanks, condensate tanks, electrical and civil works); Boskalis Australia (design and construct port); Kentz Corporation (electrical works); Cimeco (refurbish terminal tank); Mermaid Marine (Stevedoring)Value: $43 billion(Update: Mermaid Marine announcement of award of contract, November 2009)WESTERN AUSTRALIAENERGYPluto Liquefied Natural Gas Project, Burrup Peninsula (current)Principal: Woodside (90%), Kansai Electric (5%), Tokyo Gas (5%)Scope: 180km, 36in subsea pipeline to onshore LNG processing train on Burrup Peninsula, storage tanks, service infrastructure; loading jetty, shipping channel and turning basinStatus: Dual contracts for Pluto Train 2 and Train 3 front-end engineering design (FEED) awarded to Foster Wheeler and WorleyParsons (an unincorporated joint venture PJV) and KBR, November 2009; Downer EDI awarded contract for electrical and instrumentation works, November 2009. Completion of FEED studies second half 2010Purpose: Develop estimated 5tcf Pluto and Xena fields 190km northwest of Karratha Contractors: Onshore Foster Wheeler WorleyParsons (FEED and EPCM), BGC (storage and export site preparation), Leighton Contractors (LNG train site preparation), CB&I (storage tanks), Boskalis (dredging), Ngarda Alliance (accommodation); STP&I (module fabrication), Decmil Australia (civil works, central control room), Nomad (accommodation); Offshore EOS (front-end engineering), JP Kenny and Atteris (flowline, trunkline engineering), Acergy (subsea installation), McDermott Industries (platform installation); RCRFM Services (mechanical works, warehouse services); Forge Group (Design and construct); CAPE Australia (Scaffolding); AGC Industries (construction support services); Link Weld Engineering (fabrication of subsea tie-in spools); United Group (major process modules, structural steel, pipe work); Monadelphous (plant offsite utilities, acid gas removal unit); Ferguson Modular (module accommodation); Kentz Corporation (high-voltage cabling, switchboards, transformers); FEED for Pluto Train 2 and Train 3 (Foster Wheeler-WorleyParsons and KBR); Downer EDI awarded (electrical and instrumentation)Value: $12 billion(Update: Woodside announcement of award of FEED contracts, November 2009)WESTERN AUSTRALIAWATEROrd – East Kimberley Expansion Project (Current)Principal: Regional Development, LandsScope: Road infrastructure for 14,000ha development including potentially Packsaddle area, Ord West Bank, Mantinea and M2 areaStatus: Four shortlisted proponents announced for main contractor, November 2009; earthworks on district’s main (M1) water supply channel commenced February 2009Purpose: Provide necessary base infrastructure to enable development of Ord irrigation area into a world-class agricultural precinct with first release of new agricultural blocks expected by 2011Contractors: Short-listed proponents: Leighton/Indigenous Business Australia (IBA) Joint Venture; Team Savannah (BGC Contracting and Laing O’Rourke Australia Construction Joint Venture); Macmahon Contractors; Transfield Services Australia Ertech Joint Venture.Value: $415 million ($220 million from state’s Royalties for Regions funding and $195 million under Australian government’s Nation Building – East Kimberley Development Package) (Update: Landcorp announcement of shortlist, November 2009)

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