Beach's Waitsia project contractor placed under voluntary administration
ASX-listed Beach Energy on December 6 said that Clough, the engineering, procurement and construction contractor for the Waitsia stage 2 project in Western Australia, has been placed into voluntary administration.
“Beach and Mitsui E&P Australia, its joint venture partner and Waitsia operator, will work closely with the administrator, contractors, and stakeholders to ensure the continued progress of the 250 TJ/day Waitsia stage 2 gas plant,” the company said. “Beach has been working with Mitsui in planning for various outcomes and will continue to work to deliver the best outcome for the project.”
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Waitsia is one of the largest onshore gas fields ever discovered in Australia. Gas from its second stage is supposed to start flowing in the second half of 2023. With Clough being placed under voluntary administration, the project may now get delayed. Japan's Mitsui and Beach took a final investment decision on the project in 2020.
Earlier this year, Beach and BP finalised the LNG sale and purchase agreement that was signed in September last year. The agreement will see BP purchase all 3.75mn metric tons of Beach’s expected LNG volumes from the Waitsia stage 2 project.