Australian Industrial Energy (AIE) said it has awarded the key wharf facility and pipeline construction contract for the Port Kembla LNG import facility to SCSB joint venture.
AIE is aiming to help New South Wales businesses obtain reliable supplies of gas beyond 2020 by building a natural gas import terminal at Port Kembla near Wollongong.
The PKGT will have the capacity to supply over 70 percent of NSW’s natural gas needs, AIE said in its statement.
SCSB is a joint venture which comprises Spiecapag and Soletanche Bachy, which are international specialists in the core construction works required to build the PKGT wharf facility and pipeline connection to the Cringila Eastern Gas Pipeline connection point just six kilometers from the wharf.
The award of the contract follows the NSW State Government’s decision to grant development consent for the project in April 2019 and AIE welcoming its first customer, EnergyAustralia, which has committed to a five-year contract of at least 15PJs of gas per annum from 2021.
Planning design is underway for the PKGT and construction will commence immediately after the AIE joint venture partners complete their final investment decision which is expected later this year.
Construction work will include dredging, a new wharf within the existing Port Kembla dock and the pipeline to connect the new facility to the east coast gas network at Cringila.
The PKGT represents a $250m investment and will provide work and subcontracting opportunities for experts in demolition, concreting, welding, electrical works, steel reinforcement, traffic management, surveying, alongside other goods and services, with an estimated $76m being sub-contracted to local businesses.