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Thursday, March 06, 2008
AMEC wins major contract with Wales & West Utilities for replacement of gas distribution network
LONDON, UK - March 05, 2008 -- An alliance between AMEC, the international engineering and project management company, Wales & West Utilities (WWU) and Morrison Utility Services has today signed a £300 million (AMEC share: £130 million) contract to carry out a major programme of gas mains replacement across Wales and the south-west of England for WWU.
The five-year contract, which includes an option for an extension of a further five years, covers the replacement of 420 kilometres per year of ageing gas pipes.
The alliance will begin work in April this year and will take responsibility for all aspects of the mains renewal including concept, feasibility, design, programme management and implementation.
AMEC, which has a leading position in the provision of project management and engineering services to the UK gas distribution sector, will provide commercial, programme and project management, health, safety and environmental management, design support services and on-site supervision and engineering.
"This contract strengthens our position in the energy delivery sector, where AMEC is a UK market leader," said Didier Pfleger, Chief Operating Officer of AMEC's Power and Process business. "We have worked on this network for over eight years and it is rewarding to know that our close attention to health and safety, quality and successful project delivery, along with our experience of working in alliances, has been recognised with the award of this latest contract."
Graham Edwards, Chief Executive of WWU said: "We have taken the strategic decision to move away from the traditional client/service provider arrangements and have instead adopted this new alliance approach.
"Both AMEC and Morrison have significant experience, not only in the gas sector but in the utilities sector generally and this alliance will see the beginning of a new way of working between us. All the companies involved will have an equal interest in building working relationships, working practices and incentives towards the common goal of delivering this project on time and on budget.
"Our ongoing commitment to health, safety and environmental management, along with careful planning to minimise disruption to the public, is another vitally important element of this alliance."
Media contacts:
Frank Stokes, AMEC
+44 (0) 7712 008356;
frank.stokes@amec.comfrank.stokes@amec.com
Jackie Roe,
Wales & West Utilities
+44 (0) 29 2027 8860 / 07966 901518
Notes to editors:
AMEC plc is a focused supplier of high-value consultancy, engineering, and project management services to the world's energy, power and process industries. With annual revenues of over £2.2 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ approximately 19,000 people in more than 30 countries globally. AMEC shares are traded on the London Stock Exchange where the company is listed in the Oil Equipment and Services sector (LSE: AMEC.L). www.amec.com
AMEC's Power and Process business designs, delivers, enhances and maintains electricity and gas infrastructure in the UK, and industrial plant and power facilities in the UK and Americas. The business has leading positions in the supply of engineering services to the gas transmission and storage and electricity transmission sectors in the UK and selected segments of the North American industrial process market (e.g. cement). It is also one of the leading providers of technical consultancy, engineering services and programme and asset management to the nuclear industry, being well positioned, with long-term client relationships in the UK and a leading position on reactor restarts in Canada.
Wales & West Utilities
Wales & West Utilities is a regulated gas distribution business with around 34,000 km of gas distribution pipelines located in Wales and the South West of England. With its main offices in Newport, South Wales and with around 1,300 staff, the company's catchment area has a population of 7.4 million.
In addition to laying new gas pipes, making new gas connections and moving and replacing pipes and meters, Wales & West Utilities' people respond to gas emergency calls, by providing 24-hour 365 days a year service to ensure the safety of customers and consumers.
The UK gas distribution market
This market comprises the low pressure gas distribution system, organised into eight 'Local Distribution Zones', four owned by National Grid and four divested in 2005 by National Grid to operators including WWU. AMEC is a leader in the market for project management and engineering services.
In February 2005, AMEC was awarded a £280 million five-year alliance contract to upgrade gas pipelines along the 'M1 Corridor' covering the cities of Derby, Leicester, Nottingham and Sheffield.
Large scale asset replacement is taking place because of the ageing infrastructure, under long-term alliance contracts, in a market that is expected to remain strong for the foreseeable future.
The five-year contract, which includes an option for an extension of a further five years, covers the replacement of 420 kilometres per year of ageing gas pipes.
The alliance will begin work in April this year and will take responsibility for all aspects of the mains renewal including concept, feasibility, design, programme management and implementation.
AMEC, which has a leading position in the provision of project management and engineering services to the UK gas distribution sector, will provide commercial, programme and project management, health, safety and environmental management, design support services and on-site supervision and engineering.
"This contract strengthens our position in the energy delivery sector, where AMEC is a UK market leader," said Didier Pfleger, Chief Operating Officer of AMEC's Power and Process business. "We have worked on this network for over eight years and it is rewarding to know that our close attention to health and safety, quality and successful project delivery, along with our experience of working in alliances, has been recognised with the award of this latest contract."
Graham Edwards, Chief Executive of WWU said: "We have taken the strategic decision to move away from the traditional client/service provider arrangements and have instead adopted this new alliance approach.
"Both AMEC and Morrison have significant experience, not only in the gas sector but in the utilities sector generally and this alliance will see the beginning of a new way of working between us. All the companies involved will have an equal interest in building working relationships, working practices and incentives towards the common goal of delivering this project on time and on budget.
"Our ongoing commitment to health, safety and environmental management, along with careful planning to minimise disruption to the public, is another vitally important element of this alliance."
Media contacts:
Frank Stokes, AMEC
+44 (0) 7712 008356;
frank.stokes@amec.comfrank.stokes@amec.com
Jackie Roe,
Wales & West Utilities
+44 (0) 29 2027 8860 / 07966 901518
Notes to editors:
AMEC plc is a focused supplier of high-value consultancy, engineering, and project management services to the world's energy, power and process industries. With annual revenues of over £2.2 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ approximately 19,000 people in more than 30 countries globally. AMEC shares are traded on the London Stock Exchange where the company is listed in the Oil Equipment and Services sector (LSE: AMEC.L). www.amec.com
AMEC's Power and Process business designs, delivers, enhances and maintains electricity and gas infrastructure in the UK, and industrial plant and power facilities in the UK and Americas. The business has leading positions in the supply of engineering services to the gas transmission and storage and electricity transmission sectors in the UK and selected segments of the North American industrial process market (e.g. cement). It is also one of the leading providers of technical consultancy, engineering services and programme and asset management to the nuclear industry, being well positioned, with long-term client relationships in the UK and a leading position on reactor restarts in Canada.
Wales & West Utilities
Wales & West Utilities is a regulated gas distribution business with around 34,000 km of gas distribution pipelines located in Wales and the South West of England. With its main offices in Newport, South Wales and with around 1,300 staff, the company's catchment area has a population of 7.4 million.
In addition to laying new gas pipes, making new gas connections and moving and replacing pipes and meters, Wales & West Utilities' people respond to gas emergency calls, by providing 24-hour 365 days a year service to ensure the safety of customers and consumers.
The UK gas distribution market
This market comprises the low pressure gas distribution system, organised into eight 'Local Distribution Zones', four owned by National Grid and four divested in 2005 by National Grid to operators including WWU. AMEC is a leader in the market for project management and engineering services.
In February 2005, AMEC was awarded a £280 million five-year alliance contract to upgrade gas pipelines along the 'M1 Corridor' covering the cities of Derby, Leicester, Nottingham and Sheffield.
Large scale asset replacement is taking place because of the ageing infrastructure, under long-term alliance contracts, in a market that is expected to remain strong for the foreseeable future.
