Australia’s skills shortage is a major constraint on the growth of the liquefied natural gas industry, according to Macquarie Private Wealth.


Macquarie said operators and contractors were having to fight harder to attract and retain staff, with engineers, geologists and other qualified professionals being increasingly difficult to find.


“UK recruiting firm Hays recently found that Australian energy companies are paying engineers, geologists and other contractors 35 per cent more this year than last,” the firm said.


“Hays also found that professionals in the Australian oil and gas industry look set to earn 90 per cent more than the global average this year.


“These labour shortages and the ensuing wage inflation are a growing concern for the industry.”


The Australian Petroleum Exploration and Production Association recently said $88 billion worth of LNG projects were already under construction around the country while an additional $100 billion worth of projects are on the drawing board.


In Queensland alone, around $50 billion is expected to be invested in the state’s coal seam gas to LNG industry.


Two CSG-LNG projects in the state are currently in the construction phase, representing $31 billion in committed capital expenditure.


Around 5600 people are currently working on the two projects – Santos’ Gladstone LNG and BG Group’s Queensland Curtis LNG, while the sector has the capacity to create 18,000 direct and indirect jobs.


The latest report from Hudson, which surveyed 4852 employers Australia-wide, found the resources sector continued to experience the highest level of employer sentiment with 59% of employers intending to increase headcount during the July-September quarter.


Macquarie said that while the government was moving in the right direction with a range of initiatives to address the skills shortage, the firm believed that importing labour as required was the only viable solution.


Hudson regional Australian executive general manager Neville Andrews said that while it remained to be seen if the government’s initiatives would be sufficient to address the skills shortage, the issue intensified the need for talent management programs to be well thought through and selection procedures robust in order for employers to find and retain employees.


Meanwhile, Macquarie said Oil Search, a partner on ExxonMobil’s PNG LNG project, continued to be the best placed to manage the skills issue, while Woodside Petroleum, Santos and Origin Energy, which are developing projects in Australian LNG hotspots, are likely to be exposed to the skills shortage.


“While operating in the PNG highlands brings its own set of challenges, PNG LNG does not face the labour shortages and powerful unions looks set to hamper progress in Australia.


“Furthermore, PNG LNG’s superior economies should place it in a better position to absorb cost overruns and schedule slippage.”

FMC technologies has been awarded a contract to supply subsea production and associated topside systems to Shell’s Floating Liquefied Natural Gas (FLNG) facility at the Prelude Gas Field off Australia’s north west coast.

The Defence Department’s new Independent Project Performance Office (IPPO) has begun operating to monitor all major Defence capital acquisition projects.

The Australian Academy of Technological Sciences and Engineering (ATSE) has undertaken to elect a target of one-third women among its annual election of new Fellows from 2012.

 

The Academy adopted a Gender Equity Policy in November last year which “recognises leadership is needed to address the gender imbalance both within the Academy membership and its activities as well as more broadly in promoting women in senior level in technological sciences and engineering in Australia.”

 

ATSE has also endorsed the United Nations Women’s Empowerment Principles and the development of a Program of Action to back its Gender Equity Policy (including implementing the gender targets for membership) by an ATSE Gender Equity Implementation Group.

 

ATSE Fellow and Director, Professor Susan Pond, has been appointed to lead the initiative in conjunction with the ATSE President, the Board and the ATSE Chief Executive Officer.

 

Under the Gender Equity Policy, ATSE will promote women within its own organisation, engage with other organisations on gender equity issues, and promote of women in technological sciences and engineering and career development of younger women.

 

In reaffirming its commitment to the importance of the full participation of women in technological sciences and engineering in Australia, ATSE’s Gender Equity Policy highlights that women constitute a wealth of talent and creativity. Both the private and public sectors need to adopt mechanisms that enable women in technological sciences and engineering to actively contribute to Australia’s prosperity and productivity.

 

More information is at http://www.atse.org.au 

Parsons Brinckerhoff’s Australia-Pacific operations have achieved an A+ rating for its third annual sustainability report.

Downer EDI has won a $50 million contract for work at Rio Tinto's Warramboo project in the Pilbara.

Adelaide’s $1.83 billion Desalination Project has reached a milestone with seawater flooding the plant via the 1.4 km intake tunnel, connecting ocean and land for the first time.

Petroleum and minerals explorer, Central Petroleum Ltd, and Allied Resource Partners  (ARP) have announced agreement to undertake a feasibility study on a $7.5 billion plan to convert coal deposits in the Pedirka Basin in Central Australia to diesel by gasification.

Researchers in Queensland are preparing to make a bid to provide the US Navy with biofuels for ships and planes by 2020.

Queensland Premier Anna Bligh has announced how the Queensland government will allocate $100 million in a new round of Smart State funds.

The Defence Science and Technology Organisation (DSTO) is helping advance an innovative power generation and harvesting system, as part of the Capability and Technology Demonstrator (CTD) Program.

NSW energy distribution company, AusGrid, is gearing up for its first trial under the Australian Government’s $100 million Smart Grid, Smart City project, inviting 250 selected households in the Newcastle area to be part of the project.

Legislation to establish Infrastructure NSW has been passed in the NSW Parliament, and the former Premier, Nick Greiner, has been appointed as its chair. Paul Broad, currently chief executive of AAPT, has been appointed chief executive of the new body.

A co-operative team from RMIT University and the Australian National University (ANU) have developed a method that will allow mechanical pressure into electricity.

Queensland and Western Australia are set to experience a massive demand in skilled labour over the coming years, with 300,000 workers required to continue economic growth.

Western Australia’s Oakajee iron ore port and rail project has taken another serious blow after one of the two main developers announced it was struggling to raise the required funding for the site’s construction.

Victorian Minister for Manufacturing, Exports and Trade Richard Dalla-Riva has chaired a roundtable forum of engineering industry leaders aimed at developing a national strategy to address the sector’s increasing skills shortage.

Rio Tinto has announced a $637.8 million investment in its Pilbara expansion plans, aimed at fast tracking the development of the company's iron ore production capacity.

A  Leighton Holdings Ltd and GE consortium has been awarded a $130 million contract to build the Mumbida wind farm south-east of Geraldton in Western Australia.

The Federal Government will provide more than $750 million to help build two of the largest solar power stations in the world.

John Holland has been awarded the contract for the $34.5 million upgrade to Sydney Water’s Warriewood Sewage Treatment Plant (STP).

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