DB Schenker Wins Contract Worth Over 350 Million Euro for Australian Gorgon Project

JOC Staff |
(Sydney/Berlin/Essen, January 4, 2010) Kellogg Joint Venture, a consortium under contract of Chevron, ExxonMobil and Shell, has awarded DB Schenker the contract to provide worldwide and national transport for the Gorgon Project, a major gas project in Australia.

The project has a total investment volume of 25 billion euros making it the biggest gas production undertaking in Australia, and currently one of the largest in the world. According to estimates, the Gorgon field, which is located on the northwest coast of Australia, holds 40 trillion cubic meters of gas. Plans call for a gas liquefaction plant to be built on Barrow Island to utilize the gas.

The 4-year contract covers the provision of integrated logistical services by DB Schenker and has a total volume of about 500 million Australian dollars (about 350 million euros). DB Schenker will transport more than two million freight tons to module production plants in Asia and/or directly to Australia.

We are proud to participate in such a significant enterprise. Providing logistical services for complex projects like this one is a challenge that we can master thanks to the experience and expertise of our specialists, said Thomas C. Lieb, Chairman of Schenker AG.

DB Schenker's involvement in this major project underlines its role as the leading global logistical service provider of project-related, tailor-made, freight management services. Ron Koehler, CEO Schenker Australia Pty Ltd, explains further: We have established ourselves as a key player in the provision of logistical services for oil and gas exploration and production projects. DB Schenker's international network enables us to provide the contracted services at the agreed times and within the defined budget.

DB Schenker can build on its many years of experience in the Australian market as well as an extensive list of long-time customers. The company's participation in this major project strengthens DB Schenker's position as a provider of logistical services in the Asia-Pacific region and in Australia.

Initial work on the project will begin shortly on Barrow Island. Plans call for the first gas to be produced in 2014.