Clough AMEC, a joint-venture (JV) between Clough and AMEC, has obtained a contract from Arrow Energy for the Daandine expansion project in south-east Queensland, Australia.

The A$20m ($18m) expansion engineering, procurement and construction management (EPCM) contract will be carried out by the JV.

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Under the contract, which will run to the end of next year, the JV will provide the installation of additional well facilities and new gas and water gathering pipelines in the Daandine field in Queensland’s Surat basin.

Clough AMEC will also expand the existing central gas processing facility with three new reciprocating gas-driven compressors and an associated process and utility plant, increasing the total number of wells in the Daandine gas field by 22.

"We will draw on our considerable engineering expertise in the Australian coal seam gas industry to help Arrow achieve their long-term objectives for the Daandine project, safely and sustainably."

Production will be increased by modifications to existing infrastructure and the installation of additional infrastructure.

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AMEC Australia East regional director Steve Ciccone said: "AMEC is delighted to be working closely with Arrow Energy and Clough on this significant project for Queensland.

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"We will draw on our considerable engineering expertise in the Australian coal seam gas industry to help Arrow achieve their long-term objectives for the Daandine project, safely and sustainably."

The Daandine project, which is located in the Surat basin 40km west of Dalby in south-east Queensland, produced first gas in September 2006.

Total production at Daandine for the year ending 30 June 2010 was 7.90PJ, a 97.2% increase compared with the prior year. Total production for the quarter ending 30 June 2010 was 2.55PJ.

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