Chevron in talks for Wheatstone buyers

Chevron are currently in talks with potential buyers for LNG that is produced by its $27.5bn Wheatstone project.

"At the moment we are over 60 per cent of the gas sold and we are certainly looking to get over 80 per cent," said Brian Smith, general manager of Wheatstone, adding that several parties were involved in the negotiations.

The project, that is owned by Chevron, was approved in September last year and phased construction of the project is in process.

The company's biggest customer for Wheatstone is Tokyo Electric Power Co. (9501.TO), known as Tepco, which has binding agreements to buy 3.1 million tons of LNG annually.

First gas is expected in 2016.

BAM Clough JV Receive LOI for Ichthys Project

The BAM Clough JV have received a letter of intent for a $370million contract on the Ichthys LNG project. The scope of the work will include design and construction of the product loading jetty that will service the project that is owned by Inpex and Total.

Under this LOI, expenditure is limited for BAM Clough to the commencement of engineering, procurement and planning work for the project. Construction activities are scheduled to commence in early 2013. The jetty will consist of 2 vessel load out berths, one for LNG carriers and the other for LPG. A Y-shaped approach jetty consisting of a 680-metres leg connecting to the LNG berth, and a second 630-metres leg, connecting to the LPG/Condensate berth, provide access from the onshore facility.

Clough's Chief Executive Officer Kevin Gallagher said 'I am delighted to announce this contract as it is consistent with our strategy to grow our near shore marine business in cooperation with our long term and valued partner BAM.

The BAM Clough JV was established in 1964 and has successfully delivered 13 major jetty projects for the energy and resources sector. The joint venture is also working on the LNG jetty for ExxonMobil in PNG.

Pluto Ready for Start Up

Woodside has officaly run the first gas through its 14.9b Pluto LNG plant, the company released yesterday in a statement to the ASX.

Pluto has reached its 'ready for start up' phase and the first gas entered the LNG processing train late in the afternoon.

The project, that is expected to produce 37 MMboe annually, said the first production will start in the coming weeks followed by deliveries to Japenese customers.

Over the weekend, when Tropical Cyclone Lua hit the Pilbara region, personnel at Pluto was reduced to essential staff only.

Inpex buy into Prelude

Inpex has acquired a 17.5% stake in WA’s Prelude FLNG project. Inpex has purchased the stake in Prelude, which is owned by Shell Development Australia, for an undisclosed cash sum.

The purchase comes after Shell’s 30% purchase of shares in the Abadi floating LNG project in the Timor Sea which Inpex holds majority.

Inpex said it joined the Prelude venture so that it can increase its technical expertise in FLNG facilities as well as cement the partnership with Shell.

Prelude is to be the first LNG plant with no onshore processing facilities. It will have the capacity to process and export from a vessel that will float and be permanently anchored to the ocean floor. The FLNG vessel will be 480m long and 75m wide and is designed to withstand a category 5 cyclone.

The deal is subject to government approval.

Ichtyhys Civil Contract Won

The Ichtyhys onshore facilities civil works contract has today been won by a 50/50 joint venture between John Holland and MacMahon Holdings Ltd. The $340 million site development contract has been awarded by the JKC Joint venture (JGC Corporation, KBR, Chiyoda Corporation) for the onshore facilities of the LNG project near Darwin in the Northern Territory.

The construction will include access roads, earthworks, drainage and ground improvement works required for the establishment of the landmark project.

John Holland Group Managing Director, Glenn Palin, said: “Today’s award reflects the diversity of John Holland and our ability to deliver a vast range of works across the energy and resources sector, from site preparation through to design, delivery and commissioning works.”

He continued, “The contract builds on our strategy of aligning closely with major EPC contractors on approved projects in the oil and gas sector, offering safe and reliable contracting solutions to both the upstream and downstream components of these important projects.”

Gavin Stubbs, General Manager of John Holland’s Northern Region business, said: “John Holland has a long history in Darwin and a record of working closely with local suppliers in the delivery of major construction works.

We look forward to using our local knowledge and experience in the resources sector to deliver long-term employment and economic benefits for the people of the Northern Territory.”

Works are to commence in April 2012 and completion of site development is scheduled for mid 2014.