AGC Secures $50m Gorgon Pipe Spools Contract

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23 May 2011

AusGroup’s subsidiary, AGC Industries Pty Ltd (‘AGC’), a leading Australian owned fabrication, construction and integrated services company, has been awarded a major fabrication contract by Chevron Australia to manufacture pipe spools for the Gorgon Project, one of the world's largest natural gas projects and the largest single resource natural gas project in Australia’s history.

The contract, valued at approximately AU$50 million, will take place over 18 months commencing in the second half of 2011. The scope of work covers receiving material, fabrication, storage, coating and testing of 8,200 pipe spools of various diameters, weighing approximately 7,500 tonnes.

“We are extremely pleased to support Chevron as the operator of the historic Gorgon Project,” said John Sheridan, AusGroup Managing Director and CEO. “Today marks an important milestone for AGC - this opportunity strengthens our growth and delivery aspirations within the Australian natural resources industry.”

“The experience and capabilities of AusGroup will enable the project to be delivered safely and effectively, while maintaining our Perfect Day safety philosophy.”

AGC will combine the use of its fabrication facilities in Kwinana and Henderson, located 50 kilometres south of Perth, to accommodate the future growth of the Gorgon Project throughout construction.

The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia’s largest-known gas resource, located between 130km and 200km off the north-west coast of Western Australia.

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