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QGC extends four regional contracts

LNG Industry,

Queensland Gas Company Ptd Ltd, a subsidiary of BG Group, is to extend by three years the contract of four regional providers of civil construction services in Queensland.

The contracts have been awarded to Mike Jones Earthmoving, Ostwald Brothers, Amcor Excavations and Corbet's Timber Haulage. The work is collectively worth up to AUS$277 million.

Each contractor will have two crews and an average of 24 employees to undertake the construction and rehabilitation of well sites and road construction and maintenance.

Managing Director, Mitch Ingram, said the tender was the result of detailed planning for the shift in focus from project to operations.

Ingram commented: "The initial construction phase of the Queensland Curtis LNG project is nearing completion. As a result, the scope of works required for civil construction has been declining over the past two years. For example, the number of wells being developed each month has progressively fallen from 75 in 2013 and 50 in 2014 to an average of 25 this year.

"By consolidating the civil construction work with four contractors, we can provide more consistent and substantial work opportunities for these businesses."

Adapted from press release by Katie Woodward

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