Construction winds down in Gladstone, but it’s not over

AS MAJOR projects in Gladstone start to wind down, the construction industry is expecting a dismal time ahead.

But a report released on Tuesday shows there are still major infrastructure developments planned for the area in the next five years.

A Queensland Curtis LNG $8 billion third processing train is still expected to be built between 2017 and 2020.

Two major water infrastructure projects have also been listed for Gladstone, including a $345 million pipeline linking the Fitzroy River to Gladstone and raising the Eden Bann Weir by 6m, which is expected to cost $171 million.

The Major Projects Report states the pipeline project is expected to be constructed between the 2016-17 and 2018-19 financial years.

The weir is projected to be raised by 2018-19.

More construction is also expected in the gas sector, with a $450 million pipeline between Bowen and Gladstone also expected to be built between 2016 and 2019.

The projects report, which Queensland Major Contractors Association and Construction Skills Queensland released, outlines all major projects in Queensland that will occur in the next five years.

Throughout the report it mentions a bleak outlook for Gladstone as major construction projects, including the $14.8 billion Queensland Curtis LNG Downstream, $14.3 billion Gladstone LNG Project Downstream and $15 billion Australia Pacific LNG Project, finish up in the next financial year.

The report expects demand for construction labour workers to move from the Gladstone region to other booming areas in south-east Queensland and the Galilee Basin.

But this does not mean Gladstone will be out of the picture forever, the report's author and senior economist Adrian Hart said.

He predicts Gladstone will go through a recovery period.

"This report assumes the region will see one brownfield LNG expansion and a new major pipeline which, in conjunction with water, road and feeder/gather pipeline works, will lead to a recovery late in the forecast period (2018-19)."

He also said the expected downturn would depend on certain factors.

"Whether the decline becomes more substantial later on depends on whether further stages of existing LNG projects, or new LNG projects commence during the forecast period, or are delayed by high cost pressures and the emergence of competitive threats such as from US shale gas," he said.

PROJECTS TO COME:

  • Curtis LNG stage 2 expansion $8 billion
  • Gladstone to Fitzroy River pipeline $345 million
  • Raising the Eden Bann Weir $171 million
  • Bowen to Gladstone LNG pipeline $450 million


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