Great Lakes Participates in Wheatstone Project (Australia)

Great Lakes Announces Participation in Dredging Subcontract for Wheatstone Project

Great Lakes Dredge & Dock Corporation, the largest provider of dredging services in the United States and a major provider of commercial and industrial demolition and remediation services, announced its participation with DEME in the Wheatstone LNG Project dredging works in Australia.

Dredging International (Australia) Pty Ltd, a member of the DEME Group, has been awarded a subcontract to dredge the approach channel, the maneuvering area and the berths for the Chevron-operated Wheatstone Project near the town of Onslow, located along the Australian north-west coast. The subcontract was awarded by Bechtel Australia Pty Ltd to Dredging International (Australia) Pty Ltd and will be executed in cooperation with Great Lakes. The work includes dredging more than 26 million cubic meters of material and the work will be executed under strict environmental conditions.

The total subcontract represents a value at today’s currency exchange rates of about AUD 1.13 billion (about $1.21 billion), of which Great Lakes will perform mechanical dredging on the project. Great Lakes currently expects to realize approximately $180 million in revenue on this project with the potential for greater income once we finalize our participation.

The subcontract will create more than 350 jobs at peak, including 70 in Western Australia, 40 in Pilbara region and 90 throughout Australia. It will also involve business based in Onslow.

The Chevron-operated Wheatstone Project involves the construction of two liquefied natural gas (LNG) trains and a domestic gas plant 12 km west of Onslow on the Pilbara coast. Gas will be transported via a pipeline from an offshore processing platform 225 km off the coast to the onshore facilities. First LNG shipments are planned for 2016.

The project has undergone a rigorous and thorough environmental assessment. The environmental requirements that all contractors on the projects are obligated to meet will result in reduced environmental impacts, consistent with Chevron’s commitment to environmental management and stewardship.

Great Lakes will mobilize its backhoe dredge, New York, two 5,000 cubic yard material barges, tug boats and ancillary support equipment to Western Australia to assist in the excavation of clay and rock to create the access to the Wheatstone material offloading facility and the approach channel. The Great Lakes portion of the project is expected to take about 27 months to complete.

David Simonelli, President of Dredging Operations, said “Great Lakes is pleased to be participating in the Wheatstone Project with our dredge New York which is ideally suited to perform in this environment. DEME and Great Lakes have a long history of joint venture and sub-contract cooperation, and we look forward to partnering with Chevron and Bechtel to successfully complete the Wheatstone Project. Our dredge New York will enjoy solid utilization for more than two years. We expect to commence mobilization to the Wheatstone Project in the third quarter of 2012, following the completion of our other contract obligations for the dredge New York.”

The Company

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States and the only U.S. dredging company with significant international operations. The Company is also one of the largest U.S. providers of commercial and industrial demolition services primarily in the Northeast. Additionally, the Company owns a 50% interest in a marine sand mining operation in New Jersey which supplies sand and aggregate used for road and building construction.

Great Lakes employs over 150 degreed engineers, most specializing in civil and mechanical engineering, which contributes to its 121-year history of never failing to complete a marine project. Great Lakes has a disciplined training program for engineers which ensures experienced-based performance as they advance through Company operations. Great Lakes also owns and operates the largest and most diverse fleet in the U.S. industry, comprised of over 200 specialized dredging and support vessels.

Dredging Today Staff, February 14, 2012; Image: usace

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