BMD Constructions has been awarded the $714 million contract by the Gladstone Area Water Board and Queensland Government to deliver the Fitzroy to Gladstone Pipeline project.
The Fitzroy to Gladstone Pipeline in Central Queensland will deliver water security to the Gladstone region – needed to support more job-creating industries.
The design and construct project will be delivered as a 50/50 joint venture with partner, McConnell Dowell. The new pipeline will secure the single source water supply risk from Awoonga Dam enabling long-term water security for urban and industrial customers in the region.
Right now, the industry in Gladstone generates $6 billion in gross regional product every year and these activities depend on significant quantities of water now and into the future.
Chief Executive Officer of the BMD Group, Scott Power said the contract win is a significant step in demonstrating BMD’s diversified capability.
“We are excited to be delivering this pipeline, with the project marking our largest in the water sector to date. It marks a tremendous opportunity for our experienced team to continue working with our established supply chain in Central Queensland where we have proudly worked for almost 30 years.”
“Nearly $1 billion has been committed to this important project, which guarantees water security and sends a powerful signal to the hydrogen sector that Queensland is the place to be for clean energy,” says Queensland Premier Anastasia Palaszczuk.
Hydrogen proponents under development with future water requirements include the Fortescue Future Industries hydrogen electrolyser manufacturing facility, Mitsubishi Gas’s proposal for a hydrogen-to-green methanol plant, the Stanwell / Iwatani Central Queensland Hydrogen Project, Orica and H2U’s proposed green ammonia plant and Rio Tinto and Sumitomo’s proposed hydrogen plant.
The infrastructure approval also aligns with recommendations made in the Bradfield Report, commissioned by the Palaszczuk Labor Government and prepared by the expert Bradfield Regional Assessment and Development Panel.
“This 117-kilometre pipeline will run from the Lower Fitzroy River in Rockhampton and connect to Gladstone Area Water Board’s existing water network at Yarwun,” says Water Minister and Member for Gladstone Glenn Butcher.
“It will support the emerging hydrogen and renewables sector that is set to expand in Gladstone, with several companies expressing interest in coming to the region,” says Water Minister and Member for Gladstone Glenn Butcher.
“This pipeline will also allow Gladstone to access their water allocation from Rookwood Weir, which we know means security in good jobs and the delivery of safe and reliable water services to enhance the liveability of our region,” says Water Minister and Member for Gladstone Glenn Butcher.
Gladstone Area Water Board was appointed by the State Government in August 2021 to deliver pre-construction activities for the pipeline, which included undertaking procurement activities, addressing land access arrangements and determining long lead time items to ensure construction readiness for the pipeline.
“As the Delivery Authority for the project, we look forward to partnering with local suppliers to deliver tangible benefits to the Gladstone region such as jobs, supply contracts and local capability raising,” says Gladstone Area Water Board CEO Darren Barlow.
Works are underway and the expected project completion is late 2026.
A Detailed Business Case and assessment, led by the Department of Regional Development, Manufacturing and Water recommended a 117-kilometre pipeline with capacity to transfer 30 gigalitres of water per annum (GL/a) from the Lower Fitzroy River to Gladstone.
More than 25 apprenticeships and traineeships will be provided through the project, as well as more than 10,000 hours of training.
The project anticipates spending approximately $10 million with suppliers and businesses owned by First Nations Australians, in addition to 10,000 hours for workforce participation.
Source: © The State of Queensland 1997–2023 (Department of the Premier and Cabinet)
Image source: © The State of Queensland 1997–2023 (Department of the Premier and Cabinet)
BMD is one of Australia’s biggest construction companies and operates in the urban development, transport infrastructure and resources and energy sectors.
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