$5.4m gas contract
Valmec has won a $5.4 million contract to help build the Tubridgi gas-storage facility near Onslow for DBP Development Group.
The scope of work on the project includes multi-disciplinary field execution services.
Valmec managing director Steve Dropulich said the company was looking forward to continuing its strong working relationship with the DDG team.
DDG is 100 per cent owned by DUET Group, owner of the Bunbury to Dampier gas pipeline.
DDG announced in December that it would build the biggest gas-storage facility in WA at the depleted Tubridgi onshore gas reservoir, about 30km south-west of Onslow.
The facility will be connected to compressor station 2 (CS2) on the Dampier to Bunbury Natural Gas Pipeline.
CITIC, the owner of the Sino Iron magnetite project, will be the foundation customer of the facility under an initial 10-year gas storage agreement.
Additional contracts with other customers are being negotiated.
The Tubridgi storage facility is expected to be in operation by June.
The estimated cost of the facility is $69 million.
The new contract brings Valmec’s order book to more than $55 million.