Beach signs deal with Webuild to complete Waitsia Stage 2 project
ASX-listed Beach Energy has signed an agreement with Italy’s Webuild to complete the Waitsia Stage 2 project in Western Australia, subject to finalisation of Clough administration, it said on February 6.
Australian contractor Clough was placed under administration in December. The progress on the gas project comes after Webuild took control of Clough last week. “Webuild’s acquisition of Clough and its personnel, systems and processes will enable project execution to continue uninterrupted,” Beach said.
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Beach has revised its total capital expenditure estimate to A$400 ($275.48mn) – 450mn compared with A$350 – 400mn originally. The Waitsia joint venture and Webuild are targeting first gas from the Waitsia gas plant by the end of 2023.
Waitsia is one of the largest onshore gas fields ever discovered in Australia. Japan's Mitsui and Beach took a final investment decision on the project in 2020.
Last year, Beach and BP finalised the LNG sale and purchase agreement that was signed in September 2021. The agreement will see BP purchase all 3.75mn metric tons of Beach’s expected LNG volumes from the Waitsia Stage 2 project.