Millions in the pipeline

Balfour Beatty subsidiary, Balfour Beatty Utilities has been appointed preferred bidder for the gas mains replacement contract for Northern England by Northern Gas Networks.

The total value of the seven-year contract, with consortium partner Morgan Est, will be approximately £420 million. A potential five-year extension option is likely to be worth a further £300 million.

Northern Gas Networks, which bought the region’s 36,000 km gas mains network from National Grid in 2005, employs United Utilities to operate the system.

Commenting on the award today Jamie Major, United Utilities’ Head of Commercial said: “This is real progress for United Utilities and the gas industry in the North of England. The selected partners are major, well-respected companies with experience of this type of work and of this form of contract agreement.”

The contract will begin on 1st July 2006. The scope of work involves mains replacement, including diversions, reinforcements and connections in Northern England.

The contract area covers 6.5 million people in the area between Berwick in the North East, Carlisle in the North West and Yorkshire. The programme will involve replacing more than 500km of pipes each year.

The award follows the recent news that Balfour Beatty had won the £115 million contract to build the Northern Ticket Hall, which is part of the Kings Cross redevelopment and regeneration programme.