Bechtel, Union Avert Aussie LNG Construction Delays

August 15, 2014

World Energy Reports LLC.

Engineering giant Bechtel Corp reached a new workplace agreement on Friday with construction workers, averting strikes that could have delayed the start-up of three liquefied natural gas (LNG) plants it is building on Australia's east coast.

Bechtel is building $62 billion worth of LNG plants on Curtis Island off the state of Queensland, where the Construction, Forestry, Mining and Energy Union (CFMEU) approved a new pay and work schedule deal after rejecting two earlier offers.

Some workers had tried to block others getting to and from Curtis Island over the past week ahead of the vote, disrupting activity. With the new agreement approved by 54 percent of those who voted, work could return to normal, Kevin Berg, Bechtel's Gladstone general manager, said on Friday.

"Obviously the industrial action had some impact to work on the projects but we will continue to work hard to bring these LNG plants online towards first LNG production," Berg said in a statement emailed to Reuters.

BG Group Plc's Queensland Curtis Island plant is due to produce its first LNG in the fourth quarter of 2014.

The two other plants at Curtis Island, Gladstone LNG and Australia Pacific LNG, are due to start producing in 2015 and 2016, respectively.

Gladstone LNG is owned by Santos Ltd, Malaysia's Petronas, and France's Total SA.

Australia Pacific LNG is owned by ConocoPhillips, Origin Energy and China's Sinopec Corp .

Reporting by Sonali Paul

Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Monthly reports -- Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 80 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In October of each year we provide a detailed five year forecast of production floater orders. In March of each year we fine tune the forecast and make revisions as needed.
  • Online database -- The online database is updated every day – with information direct from primary sources. In the database are details for 240 planned projects, 370 installations in service, 70+ floaters on order and 20+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database.
  • Customer support -- We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request a Free Sample Report
Related company: » Petronas