This project required more than 1,200km of HDPE welded pipeline, 1,700km of fibre optic and power cabling, and well-head equipment to be managed across six construction sites, with three sub-contractors involved in the construction. Adding to the complexity, the client required Leighton to manage all materials – a somewhat unusual scenario, requiring Leighton to look to Intergraph® SmartPlant® Materials for a solution.
Within the oil and gas industry, Leighton has particular expertise in the areas of civil construction of process plants and infrastructure; gas capture and processing; transmission and distribution plants and infrastructure; and liquefied natural gas (LNG) plants and infrastructure.
In 2012, Leighton was awarded two major multi-million dollar contracts to build key gas and water infrastructure as part of the first phase of the Australia Pacific LNG Gathering Project, a coal seam gas (CSG) to LNG project that includes the development of substantial coal seam gas resources in the Surat and Bowen Basins; a 530km transmission pipeline; and a multi-train facility on Curtis Island. The contracts involved the construction of gathering systems which collect the water and gas produced from individual wells for processing, and the construction of water treatment facilities.
Adding to the complexity, the client required Leighton to manage all materials – a somewhat unusual scenario. Typically, a client buys and manages most of the materials for a project (known as free issue materials), while the remainder is purchased and managed by the contractor (known as contractor-supplied materials). Leighton had never managed materials on behalf of a third-party before – let alone on a project of this size and complexity.
The Leighton project team evaluated four materials management software packages before selecting Intergraph SmartPlant Materials, a solution tailored to the unique processes of the oil and gas industry. The solution came highly recommended by Ken Bishop, Leighton’s delivery support manager for this project.
“I had already used Intergraph software on other projects, so I had no hesitation about recommending SmartPlant Materials for the task of receiving, issuing, transferring, and forecasting all free issue materials and contractor-supplied materials,” Bishop said.
“I expected the solution to drive procurement efficiency with lower risks and costs through accurate and effective materials management – and I wasn’t disappointed.”
Bishop had particular praise for SmartPlant Materials’ reporting functionality.
“The centralized, real-time reporting allowed us to share complete and consistent data across all sub-contractors and sites,” Bishop said. “Material usage forecasting also helped to avoid delays in the schedule by pinpointing exactly where materials were required. “The sophisticated reporting features also allowed us to minimize wastage due to over-issuing.”
The solution not only helped to drive efficiency during the construction phase of the contract – Bishop believes it was instrumental in helping to win new work for Leighton.
“SmartPlant Materials enabled us to support the client in managing their material with the accuracy and thoroughness they expect,” said Bishop. “It was also a key factor in the client awarding us a second contract after handover – to look after materials in the yard on behalf of another contractor.”
Following this success, Leighton deployed four SmartPlant Material licences to the Northern Territory, where the company is delivering the Main Civil Works on the Ichthys Project Onshore LNG Facilities.
Bishop said that Leighton hopes to further streamline its processes by interfacing SmartPlant Materials with the company’s financial system. Further down the track, a move to Intergraph’s plant information management system, SmartPlant Foundation, is also under consideration.
Mario Paglia, Intergraph PP&M
+61 3 9856 1943