AusGroup’s Australian subsidiary, AGC Industries Pty Ltd, will provide construction support at Australia’s second largest resources project, the Pluto LNG process facility.

“The contract firmly establishes us as a key supplier to the LNG construction industry in Western Australia, “ said AusGroup CEO, Mr John Sheridan, in a press statement last Friday.

Work will start immediately, with completion scheduled by end FY2010 (Jun 2010).  With this contract award, AusGroup’s order book now stands at A$264 million.

The CEO was upbeat that deals related to the Pluto LNG project will help AusGroup to perform well in the current financial year and the next, according to a report by The Edge.

The global economic recession has impacted planned capex in the minerals resources industry as well as the oil & gas industry.  Yet, AusGroup is confident that by focusing on its key clients like Woodside and BHP Billiton, deal flow is more stable as projects of global significance such as those embarked on by these resource giants are unlikely to be shelved.

Discovered in April 2005, the Pluto field is estimated to contain 4.4 trillion cubic feet of recoverable liquefied natural gas.  Woodside’s $12 billion Pluto LNG Project is scheduled to commence gas production in late 2010.

The project comprises of an offshore platform in 85m of water connected to five subsea big bore wells on the Pluto gas field. Gas will then be piped to shore in a 180-km, 36-inch pipeline.

AusGroup’s scope of work consists of mechanical works associated with the installation of structural steel and process piping, installation of mechanical equipment, pre-assembled pipe racks, modules and structures, testing of pipe work and associated activities.