Engineering firm Monadelphous Group has secured an $85 million transmission pipeline contract with Chevron Australia for the Gorgon LNG project.
The contract comprises the installation of onshore pipelines, cables and tubes.
Work on the contract is expected to start immediately.
Monadelphous shares soared to as high as $13.81 on the contract news but closed even at $13.75.
See full company statement below:
Perth: Leading Australian engineering company Monadelphous Group Limited (ASX:MND) ("Monadelphous" or "the Company") today announced it had secured a contract with Chevron Australia Pty Ltd (Chevron) valued at approximately $85 million through its recently acquired transmission pipelines business KT Pty Ltd, which trades as KT Pipeline Services.
The major transmission pipeline contract with Chevron at its Gorgon Project on Barrow Island, off the north-west coast of Western Australia, comprises the installation of onshore pipelines, cables and tubes.
Work on the contract will commence immediately.
The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 per cent), ExxonMobil (25 per cent) and Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (one per cent) and Chubu Electric Power (0.417 per cent).
Monadelphous Managing Director Rob Velletri said he was pleased customers were benefiting from the Company's new specialist transmission pipeline capability so soon.
"This contract supports our objective of sustainable long term growth through expansion of our services with quality customers such as Chevron," Mr Velletri said.