Thiess win $1.8 billion deal with QGC

Thiess have won a $1.8 billion contract from CSG producer QGC for the construction of gas compression facilities in Queensland’s Surat Basin.

In a statement to the ASX, owner of Thiess, Leighton Holdings, said the contract will ‘significantly expand’ the company’s role in the in QCLNG project.

Thiess will construct all 18 field compressor stations and four central processing plants, with works to be completed by November 2014.

The new contract replaces and expands upon the $325 million agreement signed in February 2012 for a smaller project.

Leighton’s chief, Hamish Tyrwhitt said the huge investments being made in the development of CSG fields and the capacity of LNG works in Australia was creating new opportunities for businesses.

“Our operating companies have developed a high degree of competency in delivering essential infrastructure for these large resources projects and in the future, we will look to export those core capabilities into new geographies as other LNG and CSG opportunities emerge,” Tyrwhitt said.

Thiess is increasing its workforce in the Surat Basin to a forecast peak of 2600 by early 2014.

The new contract expands works from sites near Dalby and Miles to now also include compression facilities near Chinchilla and Wandoan.

As Queensland’s CSG and LNG sector ramps up to meet first export, the industry now employs close to 30,000 people and is worth than $60 billion plus in investment.

QGC and its contractors currently employ around 11,600 people and since January 2010 have spent $12 billion in Australia. Of this, $9.6 billion was spent in Queensland.

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