WDS Limited (ASX: WDS) is continuing its nine year history of providing services to Santos (ASX: STO) with a new A$24 million Construction Services Agreement.
The contract covers the field installation of gathering systems that will connect the Gladstone Liquefied Natural Gas project’s coal seam gas wells at the Fairview field in the Surat Basin, Queensland.
WDS’ Energy and Infrastructure Division will be responsible for the civil, mechanical, electrical and instrumentation aspects of the management and construction of field and trunk pipelines and CSG wellhead connections.
The company’s commitment to the CSG industry in the Surat Basin can be seen in its new facility at Roma and its employment of over 350 employees on two of the Queensland CSG-LNG projects.
WDS has also approved construction of a further 60 rooms at its Springwater construction camp, bringing total accommodation capacity there to 264 rooms.
GLNG and Santos
Santos had in June brought forward US$2.5 billion (A$2.4 billion) of upstream capital expenditure for the GLNG project.
This will result in the drilling of 300 additional coal seam gas wells in the Fairview and Roma areas in Quensland, which could have led to the award to WDS.
Santos said this change, which brings GLNG’s upfront costs to US$18.5 billion, was aimed at allowing the GLNG joint venture to sell more LNG cargoes during its initial phases and addressing the challenge of upstream field deliverability in the early stages of project ramp-up.
The 2 train project will be capable of producing 7 million tonnes of LNG per annum with first LNG cargoes expected to ship in 2015.
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