Webuild to complete Beach Energy’s Waitsia Stage 2

Rendered image of Beach Energy's Waitsia Stage 2 gas project
Rendered image of Beach Energy's Waitsia Stage 2 gas project

With Clough Limited in voluntary administration, Beach Energy has announced Webuild SpA for Webuild will complete delivery of its Waitsia Stage 2 gas project.

Related article: Beach withdraws from Warrego takeover negotiations

The Waitsia Stage 2 gas project includes a new 250 TJ/day gas processing plant with a 20-year lifecycle located in the northern Perth Basin, near the town of Dongara approximately 350km north of Perth.

Beach says the tight labour market in Western Australia has also impacted construction progress at the Waitsia Gas Plant.

This, the company says, has created “a range of uncertainty in outcomes that means Beach no longer considers it prudent or appropriate to maintain its previously targeted schedule and capital estimates”.

“Review of cost and schedule by the Waitsia Joint Venture operator and Webuild is ongoing to identify and implement opportunities to mitigate impacts on the project and constrain the range of uncertainty. Beach will provide an update when this review is concluded,” Beach Energy said in a statement.

Related article: What Australia’s new gas tax will mean for new projects, the economy and the climate

“The Waitsia project remains strongly value accretive and a key element in Beach’s future growth.”

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