Ichthys contractor in dispute over power plant cost overruns

The plant was being built by the UGL-CH2M joint venture under a A$550 million (US$414 million) contract awarded in April 2012.

However, cost overruns and delays led to a dispute with the main Ichthys LNG contractor — the JKC joint venture comprising JGC, KBR and Chiyoda.

UGL warned before Christmas that the cost of completing the plant had ballooned to A$1.46 billion, and the best estimate for a likely finish date was late 2018.