CIMIC Group awarded $190m contract at Karratha

Karratha gas plant. Image: Woodside Energy

Woodside Energy has awarded a contract to CIMIC Group’s UGL as part of the latter’s joint venture (JV) with Cape at the Karratha gas plant in Western Australia.

The contract will generate additional revenue to UGL of around $190 million and includes two further multi-year extension options.

The Karratha gas plant is central to Woodside’s proposed development of the Burrup Hub. The plant has a production capacity of 12,000 tonnes of domestic gas per day, with dry gas sourced from Scarborough, Browse and Pluto.

The JV between UGL and Cape will provide brownfields implementation services including planning and execution of work scope for mechanical, electrical and instrumentation, access, fire protection application, blasting and painting, cladding and insulation.

The Karratha plant also includes five LNG processing trains, two domestic gas trains, six condensate stabilisation units and three LPG fractionation units.

UGL has provided services at Karratha since 2015.

“Securing this contract reflects UGL’s depth of experience in industrial maintenance and asset management, and CIMIC Group’s commitment to our longstanding relationship with Woodside Energy,” CIMIC Group chief executive Michael Wright said.

The contract award was announced as the Western Australian Environmental Protection Authority (EPA) withdrew its revised guidance on greenhouse gas emissions, which was perceived as a threat to Woodside’s Browse, Scarborough and Pluto Train 2 projects.

“It was clear from the EPA’s consultation there was some uncertainty within industry on the technical aspects and the practical implementation of the guidelines, particularly with respect to offsets,” EPA chair Tom Hatton said.

“The EPA is withdrawing the revised guidelines from application, until those consultations with industry and stakeholders are more fully complete.”

Woodside chief executive Peter Coleman, in welcoming the EPA’s decision, said climate change was a complex issue that required stable and clear national policies to allow businesses to play their part in emissions reduction.

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