Monadelphous Grabs Engineering Contracts Worth $250mn

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Thursday, October 10th, 2013
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Consultancy Monadelphous has won a batch of engineering services contracts in Western Australia and Queensland worth around $250 million.

The company has announced its contract with Chevron for the provision of facilities management services to the Gorgon LNG Project off the northern coast of Western Australia has been extended by one year, bringing a highly lucrative windfall to the Sydney-listed engineering firm.

The extension of the contract, the second appended to the original three year agreement, is valued at around $150 million, and will see Monadelphous continue its operation and maintenance of construction facilities situated on Barrow Island.

Monadelphous first obtained the contract with Chevron for facilities management of the Gorgon project back in November 2009, and currently employs over 200 people for the project.

The Gorgon gas project seeks to develop the Greater Gorgon gas fields situated off the north-western coast of Western Australia, and involves the development of subsea gas-extraction infrastructure and an LNG plant on Barrow Island.

In addition to providing ample energy to Western Australian households and industry, Gorgon will  also be Australia’s fourth LNG export development upon completion, with sales agreements already concluded with suppliers in China, India, Japan and South Korea.

Monadelphous has also announced that it has won a contract with DBP DevelopmentGroup to build the Wheatstone Ashburton West Pipeline near Onslow in Western Australia.

The pipeline will connect the Wheatstone LNG project domestic gas plant, also a Chevron undertaking, with the Dampier to Bunbury Natural Gas Pipeline.

Work still commence immediately and is slated for completion by the fourth quarter of 2014.

The final contract won by Monadelphous is for the design and construction of the East Nogoa Water Treatment Plant, in the Queensland town of Emerald, situated in the state’s Central Highlands.

The raft of contracts won by Monadelphous shows that opportunities still abound for Australian engineering firms, despite a slump in the resources sector triggered by easing growth in China.

While the media and members of industry have long fretted about the demise of the China-backed mining boom, Australia’s resources sector still harbours strong potential, with renewed interest in LNG as a cleaner fossil fuel serving as an alternative growth prop for the industry.

According to Chevron the Gorgon gas project will be the largest single resource development in Australia’s history – a remarkable feat given the scale and abundance of the country’s mining projects in multiple resource areas.

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