The deal, for brownfield services in the Surat Basin, will last until April 2018 and includes the provision of construction activities, structural, mechanical and piping services across a number of QGC’s projects.
Decmil has been working with QGC in the Surat Basin for the past five years under a contract that involves the installation of wellheads and its entry into brownfield services for QGC is an extension to the existing relationship.
The company didn’t put a dollar value on the latest agreement, but in January it secured a $35 million extension to a wellsite installation services contract for Shell’s Queensland Curtis LNG’s upstream fields covering field logistics, elements of material supply and provision of construction management services.
Works under the brownfields framework are expected to commence in June 2016.
QGC has drilled more than 2500 wells to date over a 2800 square kilometre area of pastoral and agricultural land, state forests and properties it owns in Queensland.
The wells, typically 300-800m deep, target the Walloon Coal Measures on a 750m spacing pattern.
During 2015, QGC drilled an average 25 wells per month and typically has four drilling rigs operating in the Surat Basin to support its operations.
For every 100 wells there are compressors, which remove water and impurities, sending the methane to one of the six central processing plants that complete the gas clean-up.
The gas is then piped to the two 4.5 million tonne per annum LNG trains at Gladstone or put into the domestic has network.
LNG production from Train 1 and loading of the first LNG vessel commenced in December 2014. The first cargo departed Curtis Island in January 2015, and Train 2 has since followed.
The plant is expected to reach plateau production of 8MMtpa during this year, resulting in around 120 shipments of LNG per year.
Decmil’s ties with the emerging LNG sector in the Sunshine State are deep, as it also operates the Homeground Gladstone facility, which provides accommodation for workers during plant shutdowns.
The 1392 room camp is the largest accommodation facility in the region.
