The gorgon project is nearing its approval date and there will be many happy faces in WA if it all comes together. It will single handedly take away a lot of wa funding woes and fill in the gap in our coffers created by the Riot tinto Bhp billiton merger.
In other words the gorgon project will have a massive stimulus effect on wa jobs abs cash flow.Forget Rudd stimulus here comes the gorgon stimulus (fingers crossed).
Things have already started to look up with Decmil wining a contract for the gorgon project.
Perth-based engineer and builder Decmil Group Limited’s (formerly known as Paladio Group Ltd) (PDO) wholly owned subsidiary Decmil Australia Pty Ltd has been awarded a $500 million contract alongside joint venture partners to design and construct an accommodation village for Chevron Australia Pty Ltd. The company said its share of the total contract value is expected to be around $170 million, making it the company’s largest single contract.
Decmil said it would form a joint venture with Thiess Pty Ltd and Kentz Pty Ltd known as the TDK joint venture, to deliver the construction of a 3,300-person construction village on Barrow Island, off the north-west coast of Western Australia, for the Gorgon Project.
At 1055 AEST, Paladio shares were up 10c to 67c.(pls check current share price )
Clough ( Clough Limited (CLO) has also appears to have had some contracts gain from the gorgon project.
What is the gorgon project ?
The Gorgon Project
The Gorgon Project plans to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia.
The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia’s largest-known gas resource.
Development of this substantial asset will secure Australia’s position as a leading gas producer and generate a new source of wealth for Western Australia and Australia.
The project proposal includes:
- Development of the Greater Gorgon gas fields involving subsea pipelines to Barrow Island
- A gas processing facility on Barrow Island consisting of three, 5 million tonne per annum LNG trains
- LNG shipping facilities to transport products to international markets
- Greenhouse gas management via injection of carbon dioxide into deep formations beneath Barrow Island.
GORGON PROJECT DOMESTIC GAS EXPRESSIONS OF INTEREST (download pdf)