EPC Contract Awarded For BassGas Project

abarrelfullabarrelfull wrote on 01 Apr 2014 08:21

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18th June 2002

Origin Energy as Operator of the T/RL1 Joint Venture is pleased to advise that it has awarded Clough Limited an Engineering Procurement and Construction Contract (EPC) signalling the start of the detailed design phase of the BassGas project.

The EPC contract releases Clough Limited to begin the detailed design of the Joint Venture offshore production platform; 147 kilometre, 350-millimnetre subsea pipeline; 32 kilometre, 350-millimetre onshore pipeline and associated smaller pipelines; and the 75MMSCFD onshore gas plant near Lang Lang.

By awarding the contract, Origin Energy has instructed Clough Limited to order longlead compressors and line pipes required during the construction phase of the project. It is anticipated that the detailed design phase will be completed by September 2002.

Once the detailed design phase is completed, the Joint Venture will proceed with the licensing, environmental and regulatory approvals process before entering the construction phase of the project.

An independent, Government appointed panel hearing public submissions on the preferred route of the BassGas pipeline completed its hearings in early June. The panel is expected to pass its recommendations to the Ministers for Planning and Environment in Victoria, Mary Delahuntly and Sherryl Garbutt by August 2002. The recommendations are then sent for consideration to Federal Minister of Environment,
David Kemp. Origin Energy expects to hear the outcome of these deliberations in September 2002.

Origin Energy, BassGas project operator (37.5%), and its Joint Venture partners, AWE (37.5%), CalEnergy (20.0%) and Santos (5.0%) will finalise how to proceed with the construction phase of the project by the end of 2002.

Origin Energy estimates that the BassGas Project will produce enough gas to service up to 67 terajoules of gas sales a day, together with substantial volumes of condensate and LPG. It is expected to supply around 10 percent of the Victorian natural gas market over the next 15 years and will be in production by the third quarter of 2004.

Origin Energy has agreed to purchase 95 percent of the 20 petajoules of gas produced per annum for its Retail business.

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