Leighton counters Gorgon jetty press claim

LEIGHTON Holdings has corrected a Fairfax Media report which claimed it pulled out of its jetty-building contract for the 90%-complete Chevron-led Gorgon LNG project.
Leighton counters Gorgon jetty press claim Leighton counters Gorgon jetty press claim Leighton counters Gorgon jetty press claim Leighton counters Gorgon jetty press claim Leighton counters Gorgon jetty press claim

"Leighton advises it has not pulled out of the Gorgon project," the construction giant announced this morning.

The press report, which was largely based on Leighton's recent full year results, claimed the company was "pulling out of its troubled Gorgon jetty project" which "investors believed had been struggling with more than $1 billion of cost blow outs".

The report based this view on comments from Leighton's deputy chief financial officer Malcolm Ashcroft, who said the company was in the process of demobilising on the jetty project.

However, Leighton has been demobilising from this project since last year.

In late January, Chevron also said the jetty was considered complete except for the loading arm installation.

The $US54 billion ($A70.5 billion) Gorgon project is targeting first LNG production in mid-2015.

Separate 65 kilometre and 130km pipelines will link the offshore fields to the three-train, 15.6 million tonne per annum plant being built on Barrow Island.

The Barrow facilities also include a 300 terajoule per day domestic gas plant to supply Western Australia's domestic market.

The Gorgon joint venture comprises Chevron (47.3%) ExxonMobil (25%), Royal Dutch Shell (25%) and Osaka Gas, Tokyo Gas and Chubu Electric Power, which each have a holding of less than 2%.

Gorgon is Australia's largest single resources project.

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