Energy Fueling Economic Growth
Gorgon is the single largest ever Australian resource investment. It has already committed more than $14 billion to Australian industry, and generated thousands of jobs.
These jobs are in Perth – spread right through the metropolitan area including Fremantle, Henderson, Kwinana, Spearwood, Bassendean, Redcliffe, O'Connor and South Guildford - in the Pilbara at Dampier and on Barrow Island and right across Australia.
Local Jobs and Supplier Opportunities
Gorgon investment in Australia is generating more and more jobs and supplier opportunities as local companies get involved with Australia's single largest ever resource project.
The project is expected to spend about $20 billion on Australian goods and services over the next 4 to 5 years.
And early indications are confirming the independent modeling conducted by ACIL Tasman which showed that Gorgon will spend $33 billion on local goods and services in the first 30 years.
Partnering with Local Suppliers
To date, key examples of local partnerships include -
Local Fabrication
AGC has been awarded three fabrication contracts within a year, totalling more than $70 million dollars. The work includes fabrication of pipe spools, shear keys and adjustable pipe support structures and will generate more than 200 jobs in Henderson and Kwinana.
Henderson based company Civmec has received several Gorgon Project contracts, including fabrication and supply of approximately 10,000 tonnes of shop fabricated structural steel. The contract, worth tens of thousands of dollars, will create work for about 60 staff at Civmec's Henderson yard, adjacent to the Australian Marine Complex (AMC), over 15-18 months. There is potential for the manpower to grow.
Mechanical, Electrical, Instrumentation and Commissioning
More than 1,650 local jobs will be created on Barrow Island and in Henderson, WA on the Mechanical, Electrical, Instrumentation and Commissioning (MEIC) contract awarded to CB&I and Kentz Joint Venture. The contract has an estimated value of more than $2 billion dollars.
Earthworks
Since construction began on Barrow Island, growing Western Australian business Ertech has secured three contracts on the Gorgon Project totalling an estimated $250 million dollars. The contracts include General Services, Gorgon Site Development, WAPET Landing, and have created more than 250 jobs.
Permanent Building Construction
Well-known Australian company John Holland will carry out the design and construction of permanent buildings on Barrow Island under a $180 million dollar contract. The work will provide local and regional employment for more than 160 people.
Subsea Innovation
Perth subsea engineering firm Velocious is developing intricate tooling components and associated services for the Gorgon Project. Velocious is designing and fabricating buckle initiation components and tooling which will become an integral part of the project's offshore operations and subsea pipeline buckle mitigation methodology. Velocious is also providing other hardware and onshore services for the project. The multi-million dollar work is split between delivering directly to the Gorgon Project and to contractor DOF Subsea, which has subcontracted considerable scope to Velocious.
Transfer Vessels
Henderson-based local business Strategic Marine has built transfer vessels valued at almost $1 million dollars under a contract with Saipem-Leighton Consortium. The vessels will be used to transport workers to and from construction barges operating at Barrow Island as part of the LNG jetty and marine structures work.
Specialised Equipment Manufacturing
Henderson company United Industries is developing a specialised sea-bed stone spreader and more than 1,500 tonnes in various metal works for the Gorgon Project, valued at more than $8 million dollars.
Tank Construction
CBI Constructors has upgraded its Kwinana facility in preparation for the construction of two Liquefied Natural Gas (LNG) and condensate storage tanks for the Gorgon Joint Venture participants.
It is anticipated about 400 people will work at Barrow Island on the $500 million contract during peak construction.
CBI awarded a civil sub-contract to Western Australian company Killarnee Civil & Concrete Contractors for components of the earthworks and concrete construction works to the LNG storage tanks. The contract is valued at about $80 million.
Domestic Gas Pipe Lay
Western Australian engineering and construction company, Clough, heads a consortium that was recently awarded a $300 million contract to install the 90 kilometre domestic gas pipe for the Gorgon Project. Jobs at peak construction is expected to be about 500 people.
The pipe will link Barrow Island to the existing Dampier-to-Bunbury Natural Gas Pipeline on the mainland and will be constructed by the Clough Sea Trucks Joint Venture.
Engineering and procurement will commence immediately with site works expected to be completed in 2012.
Foundation Works for LNG Jetty
Hundreds of concreters, steel fixers, riggers, form workers, labourers and crane drivers are currently making headway in the manufacture of the Barrow Island Liquefied Natural Gas (LNG) jetty caissons at the Australian Marine Complex at Henderson, south of Perth.
At peak construction, Saipem-Leighton Consortium is expected to employ more than 2000 people.
Saipem-Leighton Consortium is working on nine caissons, which are at varying stages of construction. Once completed, the concrete structures would be transported to Barrow Island and lowered onto gravel beds placed at intervals on the sea floor to provide a support structure for the jetty.
Heavy Lifting
Heavy lift contractor, Mammoet, has been awarded a $123 million contract on the Gorgon Project for transporting and placement of heavy equipment and modules on Barrow Island.
The company has had a working presence in the Pilbara for several years and with this new contract has leased an additional 4,700 square metre fenced storage area in the Karratha Industrial Estate.
Mammoet's existing office and workshop in Karratha will handle the company's local recruitment, inductions and training and also be used for the storage of spare parts.
Sound Investment
Australian company UXC and its wholly-owned business unit Integ Group has been selected to provide the Gorgon Project construction village with its entertainment solution.
Under a multi-million dollar contract, Integ will deliver its entertainment solution to more than 3,000 rooms and common areas in the village, including video-on-demand, television, video gaming system, internet, radio and an outdoor movie theatre.
Hundreds of people are employed in the design, manufacture, delivery and commissioning of the construction village due for completion later this year as part of the Thiess, Decmil, Kentz joint venture.
The Australian Marine Complex (AMC)
A major logistics campaign which will see up to 1 million freight tonnes shipped from the AMC to Barrow Island involving three vessels every 10 days at peak; Construction of the concrete LNG jetty caissons (180,000 tonnes); and anticipated substantial construction support activity at the AMC.
A recent presentation by Chevron to key stakeholders outlined the development of the AMC at an AMC Stakeholder Forum
Chevron will also contribute to additional lasting infrastructure at the AMC with the construction of a $35 million dollar service and supply base that includes roll-on roll-off and load-on load-off wharves.
Dampier Supply Base
The Dampier Supply Base is a key element in the Gorgon construction supply chain.
A $32 million dollar development at the Mermaid Marine facility for the provision of stevedoring and related services currently employs some 200 people. The works involve harbour towage in the Port of Dampier, loading and discharging of vessels, quarantine related services and management of trailers on site. Cargo volumes of 1.5 million tonnes is expected to move through the Gorgon Supply Base facility.
Henderson Supply Base
The Henderson Supply Base is the critical link in the supply chain of construction materials and equipment bound for Barrow Island..
As part of the Australian Marine Complex (AMC) at Henderson, the eight-hectare lot features a lay-down area, warehouse, quarantine wash-down area and offices, employing some 100 people. Chevron was the first user of this service and supply base at the AMC.
In addition, the South Guildford Supply Base is playing a key role in the initial logistics supply chain for the Gorgon Project, generating about 75 jobs. It is used as a lay-down and storage area.
Barrow Island Supply Base
Toll Energy is another Australian company supporting the Gorgon Project.
The company has a $200 million contract to provide supply base and logistics services on Barrow Island and as a result has created nearly 200 jobs.
Barrow Island Infrastructure
To date, billions of dollars in contracts have been awarded to help develop Barrow Island infrastructure to support the iconic Gorgon Project.
Contracts awarded include the Construction Village, Initial Accommodation, General Utilities, Telecommunications, Site Preparation and Site Development.
As a result of these contracts, about 2,800 jobs have been created on Barrow Island and this is expected to increase to about 5,000 as the project progresses.
Truck Trailers
Local Perth Company, Howard Porter, employed more than 70 staff manufacturing 300 trailers for Gorgon at its Spearwood premises.
The company says the $20 million contract is the biggest single transport manufacturing order ever awarded in WA.
Modular Buildings
Local WA company, Ausco is manufacturing $50 million of modular buildings for the project. Eighty people are employed in O'Connor, manufacturing 195 single and multi storey site facility buildings.
Australian Portable Camps also has a contract to manufacture and install the project's initial accommodation.
Aviation Services
Cobham Australia is providing fixed wing flights to and from Perth and Karratha to Barrow Island. Operating from a dedicated facility at Perth Airport, it has an initial contract valued at $170 million and extends until 2016. Bristow Helicopters Australia will provide helicopters to Chevron under a six and a half year - $200 million contract.
Induction Centre
Sinclair Knight Mertz is providing project induction services from SKM's Safety and Learning Centre at Perth Domestic Airport.
The $10 million contract includes provision of induction and training facilities for Gorgon Project personnel creating more than 12 new jobs.
As part of Chevron's commitment to Protecting People and the Environment, the training facilities include provision for Health, Environment and Safety induction programs for Gorgon personnel.
Desalination Plants
Osmoflo's fabrication facility at Burton in Adelaide is building desalination plants to support operations on Barrow Island.
As a result of the contract, 30 jobs have been created to design and construct 4 reverse osmosis desalination plants and some ancillary equipment for Gorgon.
Oil and Gas Services
Welshpool Base Set To Generate Around 30 New Jobs
Chevron Australia has appointed oil and gas services company BJ Services to provide pipeline pre-commissioning work at the Gorgon Project, as part of an $88 million contract to prepare the Gorgon Upstream Facilities for commissioning.
The company has opened a dedicated facility in Welshpool in Western Australia to carry out the work and anticipates the creation of around 30 new jobs in Perth to support the Gorgon Project over the next three years.
Engineering and planning work began in January and first mobilisation is scheduled to take place in the second half of 2010.
Emergency Response Vehicles
WA family-owned Paull & Warner is based in Bassendean and is one of Australia's oldest vehicle manufacturers.
Recently, the company has been busy constructing emergency response vehicles for the mega Gorgon Project.
For the Gorgon Project, Paull & Warner are building emergency, rescue, fire and medical services equipment, including arguably the State's only all-wheel drive ambulance which will be based on Barrow Island. It has also supplied a fire fighting appliance and a range of emergency, rescue and foam trailers along with associated emergency, rescue, fire and medical equipment.
The company employs about 30 people and had expanded on the back of a growing demand for emergency service provision in the resource industry.
The company says that securing the contract with Chevron Australia for its Gorgon Project was an "enormous feat".
Loyalty to its sub-contractors has meant that some have had to employ extra staff to cope with an increased volume on the project.
On-Going Benefits for the Economy
The $33 billion estimated by ACIL Tasman to be spent on local goods and services over the first 30 years of the Gorgon Project will cascade through the WA economy. And, where practicable, we've made a commitment to use local suppliers.
According to the study and based on a 30-year, three-train LNG and domestic gas project, additional benefits will include:
- Peak construction employment in WA of around 10,000 direct and indirect jobs.
- A substantial $64 billion net (in today's money) boost to Australia's Gross Domestic Product.
- Anticipated State and Federal Government revenue of about $40 billion.
Gateway to the World
The sheer size of Gorgon will help position WA as a regional and global energy hub.