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Balfour Beatty Named Preferred Bidder for Northern Gas Contract

Balfour Beatty, the international engineering construction and services group announces that its specialist 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.

The contract will commence on 1st July 2006. The scope of work involves mains replacement, including diversions, reinforcements and connections in Northern England. The programme will involve replacing more than 500km of pipes each year.



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