THE first of four feasibility studies on the state government’s proposed fabrication and services common-use facility planned for Lumsden Point in Port Hedland has recommended it be constructed in three stages.
The facility will rely on strong growth in the oil and gas and mining sectors to make it feasible, with increasing numbers of service vessels and companies supporting those sectors likely to require yards or supply bases in the region.
Commerce Minister Simon O’Brien has previously stated that projects such as Gorgon, Wheatstone, Browse and Ichthys would increase demand for the facility.
Consultancy company GHD, which undertook the market demand study, said industry players were confident of projects going ahead in the longer term, but it was the next few years that posed a challenge for developing the facility.
“ ... the projects that underpin demand for the (facility) have not yet been awarded, or are still in the early stages of development,” GHD said its report.
“Therefore, there is the risk that these projects may not eventuate.”
Consequently it has advised the government to develop the facility in three stages, with the first beginning in 2015.
“The decision to progress to the next stage of development will be triggered by the rate of up-take and the realisation of demand,” the report said.
Its three-stage model proposed 2030 as the year for final completion.
The market demand study also laid out the specific requirements industry demanded at the current time, including: a berth measuring 615 metres; an initial 7-hectare common-use wharf; a fabrication and services estate; a shiplift and slipway; and a 300-tonne portal crane.
The market demand study is the first of four studies determining the feasibility of the facility.
GHD has also been awarded the contract to carry out the second study, which will look into potential engineering and design options.
That study will involve developing design options, assessing environmental and heritage impact and provide cost schedules to develop a business case.
The final two feasibility studies will focus on the project’s financial viability and economic benefits.
All four completed feasibility studies -costing a total $5 million - will ultimately form a business case for the project to be submitted to government.
