AUSTRALIA’s largest construction company in the oil, gas and mining sector, Leighton Holdings, is eyeing PNG LNG project as a possible target for bidding.
The company is already expecting A$1 billion (about K2.5 billion) worth of contracts from the Chevron-operated Gorgon LNG project in Western Australia which is running parallel with the PNG LNG project.
The National also reported last week that two Malaysian companies – Wah Seong Corp Bhd (Wah Seong) and Bredero Shaw Malaysia Sdn Bhd (Bredero Shaw) – were also pre-qualified bidders keen on undertaking the coating project worth US$200 million (about K535 million) for the PNG LNG gas pipeline.
Another company called, KNM Group Bhd was also considering supplying process equipment worth a few hundred million in US currency to the LNG facility.
With the final investment decision only weeks away on Dec 8, there is a great excitement among potential suppliers, construction companies and service providers to grab a piece of the action.
The Cairns chamber of commerce is spearheading moves to make Cairns city become the “supply hub” for the LNG project just as Darwin is to the northwest shelf and Timor gas projects.
Leighton’s interest in the PNG project was revealed during the company’s annual general meeting in Australia last week.
Company chairman David Mortimer told investors that its work-in-hand as at Sept 30 rose to A$38.2 billion (K94.46 billion), up A$1.2 billion (K2.97 billion) since June 30, and first quarter unaudited after-tax profit was A$130.9 million (K323.69), up from A$105 million (K325.64 million) on an annual comparison.
Its end of year profit is expected to hit A$600 millin (K1.5 billion).