Chevron has awarded a $1billion contract to Malaysia’s Kencana HL Sdn Bhd to fabricate and assemble a liquefied natural gas (LNG) processing plant for its Western Australian Wheatstone project.
Premier Colin Barnett has foreshadowed he will introduce a State Agreement for Wheatstone into Parliament that will include tough new local content provisions. However, this fabrication contract is the latest of a number of engineering, design and fabrication contracts to go offshore while this legislation is pending.
This new contract has been awarded to an offshore fabrication yard while a number of WA fabricators are operating below capacity and youth unemployment around the Kwinana strip remains high. The contract represents lost business opportunities, as well as fewer skilled jobs and apprenticeships for Western Australians.