Clough in major Woodside win

CLOUGH might be enmeshed in a $36 million lawsuit with a subcontractor over its work at the Wheatstone LNG plant in Western Australia, but that hasn't stopped the South African-owned engineering and construction company scoring new contracts with Woodside Petroleum in Australia and the small-scale Eagle LNG project in Florida.
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Haydn Black

Reporter

Clough this morning said it had been selected to work as part of an engineering panel to provide multidisciplinary engineering services for Woodside under a contract that covers the full spectrum of engineering services including concept and feasibility studies, front-end engineering and design, engineering assessment and review, detailed engineering and production support across all of Woodside's operated onshore and offshore producing assets.

"We are delighted to be selected as an engineering partner by our key client Woodside," Clough's new CEO Peter Bennett commented.

"Over the past two years, we have worked hard to lower our cost base and increase productivity by investing in our engineering and project management systems and talent development. This contract award sees this investment come to fruition, and reinforces Clough's capability to work across asset life-cycle while building upon our established brownfields engineering credentials".

He said the brownfields engineering team would deliver fit-for-purpose engineering solutions to help Woodside reduce capital and operational expenditure, while increasing safety, productivity and schedule certainty.

Clough's global LNG consultancy, CH-IV was also awarded an owner's engineer contract for Eagle LNG for a new LNG production and export facility at Jacksonville, Florida.

CH-IV is responsible for the engineering to completion of the Federal Energy Regulatory Commission application for the facility.

The Eagle LNG facility will consist of three LNG production units, with each unit capable of producing up to 33,000 tonnes per annum.

The facility will include one LNG storage tank, a marine load-out facility and dock that would accommodate small to mid-size LNG vessels as well as bunker barges for domestic ship fuelling and an LNG truck-out facility.

The facility, being proposed by US-based Ferus Natural Gas Fuels, would be Florida's first gas export facility and will target small-scale demand domestically and internationally.

The project will occupy a 197-acre parcel that is zoned for industrial activity, in an area that already hosts other bulk fuel terminals.

The company had originally planned to file its FERC documents late last year, had hoped to start construction this year, with commissioning in 2018.

Meanwhile, Clough's Wheatstone lawsuit, brought by McConnell Dowell, remains unresolved.

Earlier this month McConnell Dowell said services were delayed by the BAM Clough joint venture making changes to the marine facilities contract.

BAM Clough is building the product-loading facility and tug berths for the LNG plant near Onslow under a $405 million fixed-price contract with project manager Bechtel.

McConnell Dowell was contracted to engineer and fabricate piping, pipe racks and the loading platform for around $25 million.

BAM Clough claims that McConnell Dowell had overclaimed for man hours and plant and equipment, and did not finish work.

Chevron Corporation earlier this year flagged a six-month construction delay at the $US29 billion Pilbara project, moving its first LNG shipment target to mid-2017.

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