WA engineering and construction firm Valmec has won a long-term contract worth $24 million for LNG services in Queensland.
The company will service the Australia Pacific LNG (APLNG) liquefaction plant on Curtis Island, providing technicians, equipment and maintenance services, as well as parts to the joint venture.
Service works are expected to begin immediately, to be managed from Valmec’s facilities in Dalby.
The contract will run for an initial two-year period with an extension option for another two years.
Valmec managing director Steve Dropulich said he was pleased to have been selected by APLNG owner Origin Energy as service provider to the asset.
“This contract is of strategic importance to Valmec as it is aligned with our mission of delivering value to our clients across every aspect of our operations and the entire project life cycle,” he said.
Valmec employs around 160 people in Queensland and WA, with fully equipped workshops im each state.
Origin Energy has recently signed a non-binding agreement with ENN LNG Trading Company to supply 500,000 tonnes of LNG per year over five years.
A binding supply agreement is expected to be executed in the second half 2016, which would see deliveries to ENN’s Zhoushan terminal in Zheijiang province, China.
Origin CEO for integrated gas David Baldwin said the new heads of agreement represented a significant milestone for the development of Origin’s LNG business.
The APLNG dual-train gas liquefaction plant on Curtis Island will have a nameplate capacity of 9 million tonnes per year.
APLNG’s first cargo of gas left the plant in early January, and full production capacity is expected by the end of 2016.