Australia: DEME Enters Wheatstone LNG Project

February 13, 2012

Dredging International (Australia) Pty Ltd, member of the DEME Group, has been awarded a contract to dredge the approach channel, the manoeuvring area and the berths for the Chevron’s new Wheatstone liquefied natural gas (LNG) project nearby the town of Onslow, located along the Australian north-west coast.

The contract represents a value of about AUD 1.13 billion (USD 1.21 billion), excluding VAT.

The Subcontract will create more than 350 jobs at peak, including 70 in Western Australia, 40 in the Pilbara region, and 90 throughout Australia. It will also involve businesses based in Onslow.

The Chevron-operated Wheatstone Project involves the construction of two liquefied natural gas (LNG) trains and a domestic gas plant 12 km west of Onslow on the Pilbara coast. Gas will be transported via a pipeline from an offshore processing platform 225 km off the coast to the onshore facilities. First LNG shipments are planned for 2016.

17 km approach channel

The dredging contract was awarded by Bechtel Australia Pty Ltd to Dredging International (Australia) Pty Ltd and will be executed in cooperation with Great Lakes Dredge & Dock Company of Oak Brook, Illinois – USA. The works include the dredging of the 17km long approach channel, the manoeuvring area, the berths pockets and the tug harbour. The total dredged volume will exceed 26 million m³ of material and the works will be executed under strict environmental conditions.

A large seagoing self-propelled cutter suction dredger, a medium trailing suction hopper dredger and two backhoe dredges will be deployed to execute this major dredging assignment.

The dredging works will start at the end of this year and will be completed by December 2015.

The project has undergone a rigorous and thorough environmental assessment and the environmental conditions that all actors on the projects are required to meet will result in reduced environmental impacts, consistent with Chevron’s commitment to environmental management and stewardship.

This contract indicates a growing presence of the DEME Group on the Australian continent. Dredging International Australia is also currently executing a large-scale dredging project in Gladstone for the ‘Western Basin LNG Development’.

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Offshore Energy Today Staff, February 13, 2012