Costain has been handed a three-year extension for a major gas mains replacement contract in the East of England.
The deal will see the contractor continue to work with Cadent Gas to upgrade its distribution network across the region until 2029.
The announcement was a significant boost for Costain, which last week also landed a £400m contract to deliver tunnel and lineside mechanical and electrical systems for the High Speed 2 rail megaproject.
However, the firm’s long-awaited dualling upgrade on the A1 in Northumberland was one of five schemes to be scrapped in October’s budget, on the grounds that it was no longer affordable.
Since 2021, Costain has been responsible for replacing more than 200 miles of gas mains a year in the east of the country, one of four regional networks operated by Cadent across the UK.
Originally signed for five years, the contract management organisation will now run for a total of eight years.
As the largest gas distribution network in the UK, Cadent manages more than 80,000 miles of pipes, transporting gas to 11 million customers.
Vicky Grieve, east of England network director at Cadent, said the work carried out by Costain was part of a substantial investment in modernising the gas network in the region that would help it prepare for lower-carbon gases in the future.
“We’ve been working alongside Costain for a number of years now and we are very pleased to be able to continue our collaboration, drive further efficiencies, and ensure a safe and successful gas upgrade project in line with our business plans,” she said.
Costain’s energy sector director, Laura Hughes, said the extension reflected the contractor’s strong performance, particularly on safety and customer service.
“We’re operating in an environment where we’re able to bring different skills and capabilities to the table and apply agile operational processes around planning, programme management, reporting and control that have delivered to targets and led to efficiency gains,” she said.
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Chris Smith