Nacap’s approach keeps Arrow on target

Nacap’s collaborative approach keeps Arrow on target

CNJV stringing HDPE pipe coil along the right of way using a LineTamer.

Nacap in joint venture with CPECC (CNJV) is currently providing construction services using a Master Services Agreement delivery model (MSA) to Arrow Energy for the company’s coal seam gas operations in Queensland. In addition to its expert technical knowledge, CNJV credits its collaborative approach and strong culture for the continued success of the project and the creation of a trusted relationship between operator and contractor.

Arrow has been developing and supplying its CSG resources in Queensland’s Bowen and Surat basins for more than a decade, producing gas for both the domestic and international markets through operations that are significant in size.

In 2021, a new, three-year MSA contract was awarded to CNJV to install HDPE gathering pipelines from wells drilled by Arrow, to connect and feed back to processing facilities where the gas is then supplied to market. The scope of works includes the facility infrastructure – wellheads, skids and associated piping – along with the underground trenching and pipeline installations/testing throughout Arrow’s project tenure.

CNJV’s operations are overseen through a regional office in Dalby, Queensland, with approximately 150 staff currently out in the field. Having already spent two years on the project, CNJV sees this latest contract award as a mark of success for its collaborative approach and the strong relationship built with Arrow through communication and teamwork.

Collaborative environment

To deliver the contracted works successfully, a fully integrated Construction Management Team (CMT) based in Brisbane supports the site operations and oversees project management, procurement, cost control, scheduling, call-off order pre-award activities and contract management as a whole.

“This enabled us to work together with Arrow, not on a side-by-side basis or a project-by-project basis, but as an integrated team,” says CNJV Senior Package Engineer Nigel Bennion.

“Arrow has engaged our CMT on a progressive basis independent to the onsite works. An agreed upon team of people manage and execute the work for them in order to get these packages of work off the ground from a site execution or construction point of view.”

The CMT promotes a collaborative environment and allows meaningful interactions and clarifications between the principal and contractor, improving communications and minimising potential unforeseen challenges, and their impacts.

“As part of the CMT, we have performance targets and achievements we must hit,” says Mr Bennion.

“We have meetings, we agree on a common platform and what targets or incentives we need to hit, and we report on those as required. We continually develop key performance indicators and benchmarks so we can constantly deliver the desired results to Arrow and seek to drive improvements back through their system and ours.”

“The structure of the MSA allowed for a greater visibility and understanding of the wider project’s priority program (including drilling) to develop stronger integration and flexibility to deliver efficiencies in construction services, and at the same time meet Arrow’s gas production requirements,” says CNJV Senior Estimator Luke Baldock.

“Typically for other projects, there’s a learning phase where a new contractor comes in, there’s a new set of people you have to build relationships/ trust with and then work together as best as you can with the time available to get the

constructability into the client’s design, planning, optimisation and de-risking processes.

“Here, because our CMT is maintained on an ongoing basis to support execution as well as these initial planning phases, it allows us to short-circuit all of that. We’re here, we’ve already got the relationships, we know the relevant stakeholders and who to talk to within Arrow, we’ve developed mutual trust toward each other, and from both sides we’re comfortable the information we’re getting is relevant and correct.”

CNJV also uses an integrated process approach where it combines adjacent existing and new projects to achieve direct and indirect cost efficiencies by ‘bundling resources’. In one example, the team introduced Arrow to what it called a “mainline approach” to gathering activities which, when employed, resulted in an efficient construction sequence and delivery improvement.

“The reason we were able to see this opportunity was because of the collaborative approach – we were able to see both delivery packages in advance and come up with this approach to combine the two together and execute it in a different manner than what Arrow would have previously envisioned,” says Mr Baldock.

“We proposed it, demonstrated the benefits to Arrow, and they gave us the ‘green light’, importantly with enough time to put the plan into practice. All of this discussion happened well in advance of the planned delivery, that was the benefit of having our resident CMT team there in this style of contract where we are embedded within and focussed on best for project outcomes.”

The importance of culture

The delivery team believes its approach is successful thanks to the strong work ethic and professional culture of all parties involved. Even with the best contract strategy, without the people involved and a collaborative approach, achieving a mutually satisfactory outcome is infinitely more difficult.

“I firmly believe the CMT and MSA strategy is a benefit to the client because we have many cost efficiencies ideas available to be presented once the scope and timing parameters are known using this type of contract arrangement in the wellhead and gathering space,” says Mr Baldock.

“This collaborative MSA approach provides insight into the forward projections of Arrow’s Surat Basin business in terms of potential workload, enabling CNJV to provide valued input to investigate, propose and later execute tangible cost and schedule saving efficiencies while meeting both parties’ key objectives. Arrow receives certainty of delivery with a team that is effectively integrated support to their organisation.”

Welding of HDPE gathering pipe using a McElroy TracStar welding unit.

For more information visit www.nacap.com.au

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