AIE awards construction contract for the PKGT

10 June 2019

Australian Industrial Energy (AIE) announced another important milestone in the development of its Port Kembla Gas Terminal (PKGT) with the award of the key wharf facility and pipeline construction contract for the LNG import facility.

AIE is spearheading action to help NSW businesses obtain reliable supplies of gas beyond 2020 by building a natural gas import terminal at Port Kembla near Wollongong. The PKGT will have the capacity to supply over 70% of NSW’s natural gas needs.

The Contract was awarded to the SCSB joint venture which comprises Spiecapag and Soletanche Bachy, which are international specialists in the core construction works required to build the PKGT wharf facility and pipeline connection to the Cringila Eastern Gas Pipeline connection point just 6 km from the wharf.

The award of the contract follows the NSW State Government’s decision to grant Development Consent for the project in April 2019 and AIE welcoming its first customer, EnergyAustralia, which has committed to a five-year contract of at least 15PJs of gas per annum from 2021.

Planning design is underway for the PKGT and construction will commence immediately after the AIE joint venture partners complete their Final Investment Decision which is expected later this year. The PKGT represents a USD 250M investment and will provide opportunities for local businesses and their employees to work on this landmark project.

Construction work will include dredging, a new wharf within the existing Port Kembla dock and the pipeline to connect the new facility to the east coast gas network at Cringila.

Project information sessions outlining the opportunities for local businesses will be taking place over the coming months, ensuring all interested potential suppliers are aware of the major stages and timings of the project.