Australia: AusGroup Secures More Gorgon LNG Work

AusGroup Limited subsidiary AGC Industries Pty Ltd, a leading Australian based construction and fabrication company, has been awarded a contract extension for further fabrication work worth approximately AU$13.6 million on the Chevron-operated Gorgon Project, taking the total contract value to more than AU$80 million.

Fabrication will continue to be undertaken at AGC’s manufacturing and fabrication facilities in Kwinana and Henderson, Western Australia, and is creating jobs for approximately 280 people.

AGC’s original contract for 12,000 pipe spools has been extended to approximately 21,500 pipe spools under the agreement. The contract involves high specification fabrication of stainless and carbon steel pipework, non-destructive testing, post-weld heat treatment, blasting and LNG specification painting related to the LNG modules for trains 1-3 on the Gorgon Project.

Laurie Barlow, AusGroup CEO and Managing Director, said: “The extension of this agreement is a testament to AGC’s local fabrication capability in Western Australia. At our facility in Kwinana, we are able to manufacture on a 24-hour a day, seven days per week basis and this, coupled with our access to the Australian Marine Complex in Henderson, is a compelling proposition for clients looking for timely delivery of high-quality components.

We continue to win work on some of the world’s most prestigious energy projects, from some of the world’s largest oil and gas, LNG and resource companies, and are proud to continue our valued relationship with Chevron on Gorgon.”

The Gorgon Project is one of the world’s largest natural gas projects and the largest single resource development in Australia’s history. It is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent).

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LNG World News Staff, May 9, 2013; Image: Chevron