Australian Oil and Gas Projects Overview 2011

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction.

Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years.

In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations.

Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.
• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.
• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes.

Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time

Australia Pacific LNG project approved

Australia Pacific LNG - one of Australia’s largest LNG export projects, comprising world-class coal seam gas resources and a LNG facility on Curtis Island off Gladstone in Queensland – has been approved for development. The Final Investment Decision is to proceed with the initial construction of one train and common facilities for a two train development.

The project’s first LNG exports are scheduled to start in mid 2015, and are underpinned by a 4.3mtpa sale and purchase agreement with China Petroleum & Chemical Corporation (Sinopec Corp.). The approval of the second LNG train is expected in time to enable its start up in early 2016.

Early site works for the project, including mobilisation on Curtis Island have commenced and long lead items have been ordered to maintain the project schedule. Australia Pacific LNG, a 50-50 joint venture between ConocoPhillips and Origin Energy, already employs 1,600 people, mostly in Queensland, and will create 6,000 construction jobs and 1,000 operational jobs for the ongoing operation of the project. The project consists of the further development of the APLNG’s CSG fields, a gas transmission pipeline to the Queensland coast and a gas processing plant and associated facilities where the gas will be cooled and liquefied for shipping overseas.   Origin will be responsible for the development and management of the CSG facilities including the gas fields and pipeline and ConocoPhillips will be responsible for the construction and management of the LNG plant.

The gas fields and pipeline components of the project will generate a peak workforce of approximately 3,000 workers during the development and construction phase and approximately 1,000 during the operational phase.  The LNG facility component of the project will generate a peak workforce of approximately 2,100 workers during the construction phase.  A workforce of around 100 is estimated to be required to operate the first LNG train at the LNG facility, with around 75 further people required for each additional train.

Oil & Gas - LNG Projects in Australia

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction. Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years. In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations. Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.


• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.


• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes. Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time.   Projects are listed in alphabetical order by project name within each blog.

 

John Holland wins Gorgon contract

John Holland has secured a significant contract with Chevron to carry out the design and construction of permanent buildings on the Chevron-operated Gorgon Project, one of the world’s largest natural gas projects and the largest single resource natural gas project ever undertaken in Australia.

With a contract value of over $180 million, John Holland’s Design and Construct package will deliver essential infrastructure in the buildings-operations and administration areas, including the construction of the Gorgon Project’s operations centre and laboratory buildings on Barrow Island.

John Holland Group Managing Director, Glenn Palin, said: “This is a significant project for John Holland, aligned to the long term strategy of our business and our continued expansion into the oil and gas sector. John Holland has a strong commitment to safety, the environment and its people, and I look forward to this being the start of a mutually beneficial partnership.”

General Manager of John Holland’s Western Region, Adam Harry, said: “This is an exciting opportunity for John Holland to be involved in Australia’s largest single resource project. For many of our people this will be a once in a lifetime job and I am confident our expertise and focus on delivering safe and quality works will see the successful delivery of this project.”

Chevron has appointed John Holland for the design and construction of several permanent buildings including:
- Workshop;
- Warehouse;
- Fire Station;
- Dangerous Goods Store;
- Installation of LV Switch Room and transformers;
- Laboratory (construction only);
- Operations Centre Building, containing the Central Control Room and Clinic (construction only);
- Utilities & Services, Civil Works including roads and lay down areas.

Works on the project are due to commence on Barrow Island in late 2011, with completion expected in 2013. The Gorgon Project, which will develop the Greater Gorgon Area gas fields located about 130 kilometres off the north-west coast of Western Australia, includes the construction of a Liquefied Natural Gas plant on Barrow Island and a domestic gas plant to supply gas to Western Australia. Barrow Island is located 56 kilometres off the north-west coast of Western Australia. The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).