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Civils contract let for Australian LNG site

16 Mar 12 A joint venture of John Holland and Macmahon Holdings has won a site development civil works contract worth AU$340m (£283m) for an liquefied natural gas (LNG) project near Darwin in Australia’s Northern Territory.

The contract at the Ichthys LNG project was awarded by the JKC Joint Venture of JGC Corporation, KBR and Chiyoda Corporation.

Macmahon John Holland Joint Venture will undertake civil construction works to deliver the finished earthwork levels for the LNG plant and associated facilities. The works include access roads, earthworks, drainage and ground improvement works.

The contract award follows the recent final investment decision for the project made by Inpex and Total, which was reached on 13 January 2012.

John Holland group managing director Glenn Palin said: “The contract builds on our strategy of aligning closely with major EPC contractors on approved projects in the oil and gas sector, offering safe and reliable contracting solutions to both the upstream and downstream components of these important projects.”

The Ichthys LNG Project is a joint venture between Inpex (76%, the operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin approximately 200km offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889km subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of liquefied petroleum gas (LPG) per annum, along with approximately 100,000 barrels of condensate per day at peak.

Early works on the project will commence almost immediately with site works starting in early April 2012. Completion of the site development work is scheduled for mid-2014.

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