UGL wins $190m Woodside contract

CIMIC Group subsidiary UGL and joint venture partner Cape plc (trading as Cape Australia) have secured works at Woodside Petroleum’s Karratha gas plant.

In a statement, UGL said the contract would generate revenue of around $190 million for the company, and includes two further multi-year extension options.

The JV between UGL and Cape will provide brownfields implementation services including planning and execution of work scope for mechanical, electrical and instrumentation, access, fire protection application, blasting and painting, cladding and insulation.

UGL has provided services at the plant since 2015.

UGL managing director Jason Spears said the company was pleased to have secured the contract extension.

“We look forward to continuing to support Woodside in delivering safe and innovative services on this extensive project,” he said.

CIMIC Group chief executive Michael Wright said UGL securing the contract reflected its depth of experience in industrial maintenance and asset management.

The Karratha plant covers about 200 hectares and includes five LNG processing trains, two domestic gas trains, six condensate stabilisation units and three LPG fractionation units.

The plant has a production capacity of 12,000 tonnes of domestic gas per day, with dry gas sourced from the Browse, Pluto and Scarborough projects.

Woodside plans to make final investment decisions on the Browse, Scarborough and Pluto projects next year, with engineering work already under way.

The contract was announced a day after the Environmental Protection Authority withdrew its revised guidance on greenhouse gas emissions.

A day prior to the EPA’s withdrawal, speaking at the Australasian Oil & Gas Exhibition and Conference, Woodside Petroleum chief operating officer Meg O’Neill said the EPA’s policy would create uncertainty and risk around the three projects.