Wednesday 19 December 2012

National Grid awards £3.1bn for gas network upgrade

National Grid has awarded contracts worth £3.1 billion to three firms to upgrade four of its gas distribution networks.

Two of the eight-year contracts were given to Balfour Beatty to operate networks in the North West and West Midlands, which includes the design and installation of modern polyethylene gas distribution mains to replace aging metal pipes. Morrison Utility Services and Skanska will operate in the East of England and London networks, which includes gas mains replacement, connections and diversions.

The UK network operator hopes the project will ensure it will continue to deliver gas safely and efficiently to homes and businesses and develop innovative ways to increase customer service and satisfaction.

Jonathan Callighan, Head of Strategic Partnerships at National Grid said: “Our aim is to work together to continue our investment in our networks and to look at new ways of working to improve the safety and the quality of service people experience.”

The news follows Ofgem’s announcement to sanction £24.2 billion for new and upgraded gas and electricity networks up to 2021, which could add around £12 to annual energy bills.