The Australian subsidiary of Dutch Dredging firm Boskalis has won the ?500m ($744m) contract to build a port.
The Australian subsidiary of Dutch Dredging firm Boskalis has won the ?500m ($744m) contract to build a port in connection with Chevron"s Gorgon gas project off Western Australia.
Work is to begin in the new year on the development of a terminal at Barrow Island for the large-scale gas project, and on dredging the access channels for the terminal.
The Gorgon project is one of Australia"s largest liquefied natural gas projects, mostly owned by US oil major Chevron, with investment from Shell and ExxonMobil.
Given the final clearance for development last month, the project plans to produce 15m tonnes of gas per annum when it starts production in 2014.
The liquifaction plant to be built on Barrow Island will tap into the Jansz and Gorgon gas fields 140 km and 70 km away. It will use three plants to create LNG for export, mostly to China, Japan and South Korea, as well as Australian domestic demand.
The Gorgon project is part of Australia"s plans to become the world"s second largest LNG exporter by 2020.
Boskalis spokesperson Martijn Schuttevåer said the project was the largest the company had won this year and would involve building a ro-ro facility to create access to the island for building the liquification plant.
He said having previous track record of working on LNG projects with Chevron and working on Australian projects had helped secure the contract as there were a number of environmental constraints associated with the work on the remote island. Barrow Island is a recognised nature reserve.
Chevron has operated Australia's"s largest onshore oilfield for the last 40 years.
Boskalis' dredging project has to be completed within two years once it gets underway in the beginning of next year, although Mr Schuttevåer said the dredging company has been working with Chevron over the last twelve months on the designs to help expedite the project.
Work will mostly be done with a jumbo cutter and a large hopper along with a number of back hoes. Work will include the preparation of the channels and turning basins for the LNG vessels as well as the construction of the quay walls and a ro-ro ramp for the future contractors building the LNG terminal.