Australian engineering giant Downer EDI has secured a massive $750 million contract with energy heavyweight Chevron for maintenance works at two of Western Australia's most significant gas export facilities.
Major Deal for Pilbara Gas Plants
The ASX-listed company confirmed it has locked in a ten-year agreement commencing January 2026, with a potential five-year extension that could see the partnership span fifteen years. The comprehensive contract covers maintenance, asset management and small capital projects for non-process infrastructure at both the Gorgon and Wheatstone LNG plants in the Pilbara region.
Downer informed markets the contract would be worth approximately $750 million if it runs the full fifteen-year term. The company's shares responded positively to the announcement, climbing 0.5 percent to $7.79 in morning trading on the Australian Securities Exchange.
Strengthening Long-term Partnership
Downer Chief Executive Peter Tompkins emphasised that the new agreement builds upon an established relationship with Chevron, highlighting their collaborative focus on safety and performance improvement.
"This contract builds on a strong, long-standing relationship with Chevron and reinforces our shared focus on keeping our people safe, driving performance, and collaboration," Mr Tompkins stated.
The CEO also committed to creating "meaningful opportunities for local and Indigenous communities" throughout the contract period, signalling significant regional employment and economic benefits for Western Australia.
Critical Energy Infrastructure
Chevron's Gorgon and Wheatstone facilities represent cornerstone assets in Australia's energy export landscape. Combined, the two plants ship nearly 25 million tonnes of liquefied natural gas annually to key trading partners including Japan and South Korea.
Beyond their export significance, the operations play a vital role in domestic energy security, producing more than 40 percent of Western Australia's domestic gas supply. This substantial contribution powers homes and businesses across the state.
The announcement comes as Chevron prepares for further expansion, with The West Australian reporting in October that drilling on the company's next wave of offshore fields—Geryon and Eurytion—is expected to commence next year.
This substantial contract award demonstrates continued confidence in Western Australia's energy sector and underscores the ongoing importance of LNG exports to the national economy.
