At least 600 workers stood down from LNG project near Darwin

More than 600 workers have been laid off from the $36 billion Inpex natural gas project near Darwin, the ABC reports.

A contractual dispute between Kawasaki Heavy Industries and Laing O'Rourke is reportedly behind the massive axing at the Ichthys LNG project.

Laing O'Rourke was contracted to build cryogenic tanks at the Inpex site for Kawasaki Heavy Industries, the ABC reports.

The tanks were part of the largest contract at the site, but Laing O'Rourke has reportedly withdrawn from the project amid the contractual dispute.

The $36 billion Inpex project near Darwin. Source: Supplied/Inpex

Between 600 and 1000 workers have been sacked, the CFMEU has confirmed. Source: Supplied/Inpex

Initial reports stated the number of layoffs exceed 1000 but this has since been revised down to at least 600 workers.

Spokesman for the Construction, Forestry, Mining and Energy Union (CFMEU), Josh Burling, told the ABC Laing O'Rourke contacted him Wednesday morning to confirm the lay-offs.

"They will be making about 650 direct employees from Laing O'Rouke and a further 200 employees from subcontractors to Laing O'Rourke redundant from the tanks project at Inpex," Mr Burling said.

The lay-offs come amid a contractual dispute between Kawasaki Heavy Industries and Laing O'Rourke. Source: Supplied/Inpex

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