Laing O’Rourke Australia Construction has demobilised approximately 800 of its people from the INPEX operated Ichthys LNG Tanks Project in Darwin. 

In conjunction with Kawasaki Heavy Industries (KHI) of Japan, Laing O’Rourke has been constructing four cryogenic tanks on the project for JKC Australia LNG Pty Limited, under a contract signed in 2012. Work began on site mid-2013 and is in its final stages.

KHI, which leads this phase, has not paid Laing O’Rourke for its work on this complex and resource-intensive remote engineering project for several months.

Laing O’Rourke has made significant efforts to resolve the matter, but direct approaches to KHI in Japan over recent weeks have failed to produce a satisfactory outcome.

After the most recent meeting in Tokyo last Thursday, Laing O’Rourke notified the parties that it would take action to protect itself from the consequences of KHI’s conduct, unless urgent measures to rectify the situation occurred.

KHI has declined to take those necessary steps.

Laing O’Rourke’s priority is to now attempt to redeploy staff to the company’s significant national pipeline of projects whilst also assisting sub-contractors impacted by this demobilisation.

Laing O’Rourke – which has operated in Darwin and the NT for almost 50 years – has ensured all staff, suppliers and contractors have received their entitlements during the period of dispute. The company’s other project on the Ichthys site, which is direct for JKC, is unaffected.

Image courtesy of INPEX.