Australian Gas Infrastructure Group has been awarded by Woodside Petroleum for works on the pipeline component of the Pluto-NWS Interconnector.
The pipeline will run 3.2 kilometres and connect Woodside’s Pluto liquefied natural gas plant to NWS’ Karratha gas plant.
AGIC said it is the first component of the infrastructure needed to transport gas between the two facilities.
Under the contract, AGIC subsidiary DDG Operations will design, construct and operate the new pipeline, in addition to the construction of three other facilities, including a new meter station located near the Karratha gas plant.
AGIC chief executive Ben Wilson said the contract further cemented the company's role as an owner and operator of critical infrastructure in Western Australia.
“AGIG already delivers for WA through the Dampier Bunbury natural gas pipeline and our partnerships with many of the state’s major resource companies,” Mr Wilson said.
"We are proud to be partnering with Woodside on this important project to support the further development of gas infrastructure on the North West Shelf."
AGIC general manager of commercial Jon Cleary said the design, engineering and approvals for the pipeline are at an advanced stage.
"Subject to the granting of environmental and regulatory approvals, construction is planned to begin in 2020, with procurement and engineering already underway," Mr Cleary said.
Also commenting on the award was Woodside chief executive Peter Coleman, who said the pipeline was a key component of the company's proposed Burrup Hub project.
“Our vision for the Burrup Hub will unlock the future value of infrastructure which has been supplying gas to WA and the world safely and reliably for more than 30 years,” Mr Coleman said.
“The interconnector between the Pluto LNG and NWS facilities will enable us to optimise the processing of gas from our offshore fields.
“Delivering the proposed Burrup Hub will help underpin WA’s economic strength for decades into the future.”
Mr Coleman added the Burrup Hub would provide thousands of jobs, opportunities for local suppliers and tax and royalty revenues to the state.
Woodside is targeting start-up of the Pluto-NWS interconnector in the first half of 2022.
The award comes three days after Wooside announced it had expanded its Scarborough gas resource estimate by 52 per cent.
Shares in Woodside Petroleum were up 1.46 per cent to trade at $34.12, as at 4:11pm AEDT.
Source: Business News