AGC Industries wins second Gorgon deal

AusGroup subsidiary AGC Industries has won a second multi-million contract for work on Chevron's $43 billion Gorgon natural gas project.

AGC Industries will fabricate and supply adjustable pipe support structures for Gorgon, in a deal worth $12 million.

"This latest contract award continues to underline the excellent relationship we have built with Chevron, while demonstrating our ability to deliver fabrication projects using local resources," AusGroup chief executive Stuart Kenny said.

"Our recent growth in both capability and experience will enable the safe and effective delivery of this contract, while maintaining our Perfect Day safety philosophy."

In May AGC Industries announced it had won a $50 million contract covering, fabrication, storage, coating and testing of 8,200 pipe spools of various diameters for Gorgon.

Commerce Minister Simon O'Brien congratulated AGC on the contract win, and emphasised that Western Australian service and supply companies had the skills and capabilities to support resources projects across all phases of development.

"There will undoubtedly be comments that these contracts are not enough but I believe this is just the start," Mr O'Brien said in a statement.

"This announcement is a win for AGC, a win for local workers and a win for the state."