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Fri April 26 2024

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£60m MoD pipelines deal for Costain

8 Mar 12 Costain has been awarded a three-year contract to look after the Government Pipeline and Storage System.

The contract is expected to have a value over three years of approximately £60m, and has the potential to extend for a further two years.

The Government Pipelines and Storage System (GPSS) is a 2,500km pipeline system run by the Oil & Pipelines Agency for the Ministry of Defence. It ensures that UK military requirements for aviation fuel are met.

Costain will be responsible for asset management and capital project delivery in addition to operations and maintenance of the network.

The capabilities of Promanex, acquired by Costain in August 2011, were instrumental in securing the contract, the company said.

Chief executive Andrew Wyllie said: "The award of this contract by a new customer demonstrates the value that Promanex has brought to Costain in providing the full life of asset services in high growth market sectors. It also marks an important stage in the ongoing transformation of the Group as we continue to broaden our service offering, both organically and by targeted acquisitions.

"Our strategy of focussing on major customers whose spending plans are driven by national need, regulatory commitments or essential maintenance requirements continues to deliver results. We look forward to working with the OPA to ensure the safe, cost effective and efficient operation and maintenance of this strategic national asset."

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