Aveng to repay A$112m advance for Queensland JV gas project
The Queensland Curtis Liquefied Natural Gas (QCLNG) pipeline and facilities project has requested the repayment of the remaining A$112-million advance payment from construction and engineering major Aveng, whose Australasia and Asian business remained tied up in long-standing commercial claims lodged with respect to the project, on which it was a 50% joint venture partner.
Aveng said in a statement on Tuesday that it intended to settle this liability on or around October 28 and believed it would thereafter have removed the project’s cash flow risk, while continuing to “vigorously” pursue its legal claims through the arbitration process.
The repayment was planned and had been included in the group’s liquidity analysis performed earlier this year, it held.
The arbitration proceedings relating to the QCLNG project were well advanced and the formal hearing was set to start in November, while a final award was expected in August 2016.
Following the completion of the third and final step in Aveng’s strategy to improve its balance sheet and liquidity position, namely the conclusion of the sale of various properties, combined with current levels of cash generation, the group has sufficient cash and facilities at its disposal.