LNG construction blowouts a win for lawyers

AUSTRALIA'S LNG sector is set to be swamped by a multibillion-dollar wave of disputes between producers and contractors over liability for cost blowouts and delays, as the slump in resources investment and commodity prices sharpens appetites to claw back funds.

Brisbane Times reports Santos' $US18.5 billion GLNG project at Gladstone is among those understood to be the subject of arguments over responsibility for contract variations that have had an impact on the entire supply chain.

The gas companies leading the projects declined to comment.

But Kevin Berg, Bechtel's general manager at Gladstone, played down the claims.

"As is typical on all major projects of this scale, many closeout activities are in progress as we move closer to completion and handover of assets to our customers," Mr Berg said.

What makes the LNG sector unique is the sheer magnitude of the sums involved.

Read the full story at the Brisbane Times.



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