Mining services and construction contractor Monadelphous has launched a new foray into the US gasfields.
Yesterday the company announced it had entered into an agreement with US company Mascaro Construction to establish a new jointly owned company, Monaro LLC.
The new venture will be based in Pittsburgh, Pennsylvania, positioning it to take advantage of the burgeoning infrastructure investment boom tied to production in the Marcellus and Utica shale gas plays.
The gas industry in the north-west US has undergone its own exploration and production boom dating back to 2005, when the Marcellus Shale was discovered, which has since proven to be one of the largest gas plays in US history, with reserve estimates climbing every week.
Local industry has shifted away from coal production in Pennsylvania, focusing on manufacturing and services to the gas industry in the region.
A statement from Monadelphous said the soon to be established Monaro LLC will operate not only in Pennsylvania, but also in Ohio and West Virginia, targeting work for gas, energy and chemical processing industries.
Monadelphous’ new partner Mascaro is a Pittsburgh-based general contractor, experienced in the region with strong background and capability in civil construction, and was considered complimentary to the Australian mechanical and electrical capabilities.
The new company will be headed by Bob Santillo, a Pennsylvania local with more than 40 years of multidisciplinary construction experience in the region.
Monadelphous managing director Rob Velletri said the new move was a key milestone in the company’s overseas growth strategy.
“Monaro gives Monadelphous a strong entry into the US gas market,” he said.
“Our partner, Mascaro, has a similar organizational culture to Mondelphous, and the combined skills and capabilities of our two businesses will allow Monaro to deliver multi-disciplinary construction services.
“We are also pleased to have secured the services of Bob Santillo, who comes with high credentials and is an experienced executive in the local market.”