Italian oil and gas contractor Saipem has received an engineering, procurement and construction contract worth $1bn from Gladstone LNG Operations.

Saipem will engineer, procure and construct a 435km, 42in-diameter gas pipeline in Queensland, Australia.

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The pipeline will connect gas fields in the Bowen and Surat Basins in Queensland to the Gladstone State Development Area on the Coral Sea shore near the city of Gladstone, where an LNG liquefaction and export facility will be built.

The pipeline will be buried and mitigation measures, including weed control, rehabilitation and biodiversity offsetting, will be implemented during its construction to minimise its environmental impact to sensitive areas.

Saipem has also agreed to increase its scope of work on various onshore contracts in West Africa and the Middle East.

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