The Australian unit of Chevron Corporation awarded a major pipe stool manufacturing contract to AusGroup for the Gorgon liquefied natural gas project. The value of the deal has been estimated at approximately A$50 million, reports Zacks. The contract, covering a time frame of 18 months, will commence in the second half of 2011. Singapore listed AusGroup will execute the deal through its subsidiary AGC Industries Pty Ltd. The scope of the work involves receiving material, fabrication, storage as well as coating and testing of 8200 pipe spools of various diameters, weighing approximately 7500 tons. The $37 billion Gorgon project is a natural gas venture in Western Australia, covering the development of Greater Gorgon gas fields, subsea gas-gathering infrastructure and an LNG plant on Barrow Island. The facility is expected to produce approximately 15 million tons of LNG per year, with the first gas production expected in 2014.