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Tue May 28 2024

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Skanska, Morrison and Balfour Beatty bag £2.8bn gas mains renewal deals

19 Dec 12 National Grid has awarded four contracts for gas mains replacement collectively worth £2.8bn over the next eight years.

Balfour Beatty has been selected for the northwest and West Midlands regions, worth £1.2bn in total. A partnership of Skanska UK and Morrison Utility Services has been given the east of England and north London under a pair of contracts together worth £1.6bn.

Work involves the design and installation of modern polyethylene gas distribution mains to replace aging metal pipes as part of a programme of work agreed between National Grid and the Health & Safety Executive. The contract includes pipe replacement, connections, diversions, reinforcements, other capital asset replacement activities and resource provision.

Work is scheduled to start 1 April 2013 and end 31 March 2021.

Balfour Beatty said that the contracts built on its existing electricity alliance contract with National Grid, which involves refurbishing its high voltage transmission network in England and Wales. Balfour Beatty also invest £55m of working capital in the contracts.

Chief executive Ian Tyler said: "National Grid is one of our longest held relationships and we are delighted to continue this partnership. The award of these new contracts builds on our ongoing strategic focus in the power market and is an excellent example of partnership with our clients to deliver continuing value as well as ongoing certainty to a core element of the UK's infrastructure."

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