It's been a few months since our last business update, and I'm pleased to share some significant developments as we move forward with a combined Engineering Construction newsletter next month.
First and foremost, our project in Mongolia has now surpassed the 95% completion mark. However, due to technical engineering challenges we will remain on our Project a bit longer than anticipated, we are working closely with our client to address these issues. Despite these challenges, the project has been outstanding, and we remain optimistic about future opportunities to continue our work at Oyu Tolgoi (OT).
Over the last few months, we've successfully wrapped up several SMPE&I projects, including Christmas Creek, Kathleen Valley, and TUL. The contribution from our electrical teams has been exceptional, with both internal and external feedback reflecting the high standard of work delivered. Thank you to everyone involved for your dedication and hard work—congratulations on these successful completions.
Looking ahead, the future of E&I is favourable, especially with the industry's increasing focus on decarbonisation, electrification, and renewable energy. We are actively positioning ourselves to seize these opportunities, not only through robust tendering efforts but also by building the capacity to deliver these projects effectively. Over the past three months, we have tendered for projects in Gladstone, Brisbane, and the Pilbara, and through your hard work, we've strengthened our relationships with existing customers.
As always, safety stands at the forefront of everything we do. We continue to maintain a work environment where The Safe Way is The Only Way, ensuring that every team member can work securely and productively.
Thank you for your continued dedication and hard work.
Damien Johnson
Welcome everyone to this month’s edition of On the Wire. Hopefully you’ve been able to navigate through the winter period, with spring and the warmer weather not too far away.
On the project front, the Kathleen Vally team has now completed their demobilisation after a very successful execution under challenging circumstances. Congratulations to Craig Wearne and his team for a job well done.
The TUL project, located at Port Headland’s Anderson Point, has now completed its demobilisation after wrapping up the final shutdown. Congratulations to Mike Diston and his team for finishing the scope strong after the 12-month duration. A special mention to Luke Jaenke who also chipped in to give Mike some assistance over the journey while also looking after Car Dumper 3 (CD3).
Speaking of CD3, the team is currently planning for the Nelson Point and South Flank shutdowns while also undertaking their core scope on CD3. September and October will be critical months as they work to complete the additional South Flank scope and maximise opportunities during the Nelson Point shutdowns, leading into next year’s major CD3 shutdown.
Over at Christmas Creek, the team has successfully completed their scope and demobilised from site. Congratulations to Luke Healy and his team, who also faced substantial headwinds to get the project across the finish line.
With the successful completion of Kathleen Valley, TUL, and Christmas Creek, the timing of the Western Range contract award couldn’t be better. We've been able to form a team from the three demobilised projects and immediately transition them to this new contract. So far, the team has delivered exactly what the client was looking for and is currently in the middle of a shutdown which could hopefully lead to an additional scope. A shout-out to Peter Deering for his instrumental role in supporting the site team during these critical works.
On the subject of new contracts, EC was pleased to announce the successful award of the Pluto Liquefied Natural Gas (LNG) Train 1 construction contract. This project involves a substantial scope related to the Scarborough Project, enabling it to be processed through the existing facility. The large E&I scope and front-end works are underway, with site mobilisation scheduled for the first quarter of 2025.
Unfortunately, low commodity prices have impacted the Kemerton project down in Bunbury, leading to a decision not to proceed with the expansion. Dave Chapple and his team are currently working through the final month before redeploying to other projects. The team has done an exceptional job navigating through the changing environment.
From Bunbury, we head over to Greenbushes, where the mobilisation for the CGP3 project is in full swing. Jamie Judge and Michael O’Connell are continuing to find opportunities with our SMP team, keeping the flow of work steady and preparing themselves for the influx of additional electricians due to mobilise in the coming months.
Finally, in Gladstone, the team continues to tick along, successfully delivering for their regular customers. They are also getting closer to securing an award of what will hopefully be their biggest contract win to date. If successful, this will be the result of a drawn-out process that has required significant effort and patience. Hopefully, we will be able to provide a positive update on this in the next edition.
That’s all for this month. Stay safe.
Iain Hannant