DBP Development Group signs Domgas pipeline deal for Wheatstone Project
DBP Development Group (DDG), 100% wholly owned by DUET Group, is pleased to announce that it has reached agreement with Chevron Australia to build, own and operate the domestic gas pipeline for the Chevron-operated Wheatstone Project. The agreement is expected to create approximately 160 new Western Australian jobs during the construction phase.
The Wheatstone Ashburton West Pipeline Project (the Project) will link the Wheatstone Project’s domestic gas plant to DUET’s majority-owned Dampier to Bunbury Natural Gas Pipeline (DBNGP).
The Project is expected to be completed by Q4/2014 at a total cost of $94.9 million and includes:
• refurbishment of DDG’s existing 87 kilometre 10 inch pipeline from Ashburton West to Compressor Station 2 on DUET’s majority-owned Dampier to Bunbury Natural Gas Pipeline (DBNGP);
• construction of an 87 kilometre 16 inch loop alongside the existing 10 inch pipeline;
• construction of a new 22 kilometre 16 inch pipeline, connecting Ashburton West to the Wheatstone Project’s domestic gas plant; and
• an initial 30-year 100% take-or-pay gas transportation contract between DDG and Chevron Australia. The Project will provide an initial forward haul gas transmission capacity of 337 TJ per day with future expansion capacity of up to 600TJ per day.
DBP Chief Executive Officer, Mr Stuart Johnston, said the agreement provides the opportunity to work on one of Australia’s largest resource projects and to create employment opportunities in Western Australia.
“We are pleased to have been awarded the domestic gas pipeline contract for the Wheatstone Project and to have the opportunity to create local jobs. During the construction phase, the project will employ around 160 people in Western Australia, and more than 75% of the overall project costs will be spent in Australia”, said Mr Johnston.
“DBP prides itself as being a safe and reliable developer, owner and operator of critical pipeline infrastructure in Western Australia and we will maintain our high standards on this project”, said Mr Johnston.
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DDG is 100% owned by DUET Group. DDG is the owner and operator of the Ashburton West Pipeline and associated easement which connects an existing gas pipeline system to the DBNGP. DDG was established in 2011 to develop, own and operate gas pipelines and associated infrastructure.
About Chevron Australia:
Chevron is one of the world’s leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of more than 4,000 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; and operates Australia’s largest onshore oilfield on Barrow Island. Chevron is also a significant investor in exploration offshore northwest Australia and onshore in the Nappamerri Trough, central Australia. Chevron’s Perth-based Global Technology Centre provides technology support and solutions to the company’s operations in Australia and around the world. www.chevronaustralia.com
About the Wheatstone Project:
The Chevron-operated Wheatstone Project is one of Australia’s largest resource projects. Located at Ashburton North, 12 kilometres west of Onslow in Western Australia, the project will consist of two LNG trains with a combined capacity of 8.9 million tonnes per annum and a domestic gas plant. The Wheatstone Project is a joint venture between Australian subsidiaries of Chevron, Apache Corporation, Kuwait Foreign Petroleum Exploration Company (KUFPEC), Shell and Kyushu Electric Power Company (Kyushu) together with PE Wheatstone Pty Ltd (part owned by TEPCO).