Contractors Unlimited

Fluor Awarded FEED Contract for Santos Gladstone LNG Upstream Project in Australia

Fluor Fluor Corporation announced today that it was awarded a contract to perform front-end engineering and design (FEED) services for Santos Limited's Gladstone Liquefied Natural Gas (GLNG(R)) Upstream Project in Queensland, Australia. The company booked the $16 million contract in its second quarter of 2009.

"This is truly a unique engineering opportunity for Fluor and we are honored to work with Santos on the FEED phase of this milestone project in Australia," said Peter Oosterveer, president of Fluor's Energy & Chemicals Group. "The Fluor team stands ready to assist Santos in what will be the world's first project to convert coal-seam gas to liquefied natural gas."

Fluor's scope of work for this contract includes the preparation of an execution plan and cost estimate for the engineering, procurement and construction of the upstream facilities required to deliver coal-seam gas from Santos-operated, coal-seam gas fields in central Queensland to the proposed GLNG(R) liquefaction facility to be located at Gladstone in Queensland. Fluor's project team for the FEED phase will be led from the firm's Brisbane office.

The overall GLNG(R) project, when completed, is expected to produce 3 to 4 million tons of LNG per year. A gas supply of 170 to 220 petajoules per year will be sourced from the Santos-operated coal-seam gas fields in Queensland's Bowen and Surat Basins. Santos currently produces about 25 percent of Australia's coal-seam gas.

As the operator of the GLNG(R) Project, Santos has a 60 percent share of the project. The joint venture will develop and operate the 435 kilometer gas pipeline to Gladstone and the LNG liquefaction plant on Curtis Island at Gladstone.

Posted 27/07/09

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