Morrison celebrates £970m gas double

Morrison Utility Services has tapped into gas deals potentially worth £970m.

The firm, which has been sold to two private equity firms for £135m, will carry out gas mains replacement and new connections work for Scotia Gas Networks under a deal worth £720m.

The project will cover jobs in south-east England.

The scheme has been amalgamated into a Combined Engineering Period Contract and spans eight years.

The work, which starts on site next month, includes replacing around 4,000km of gas mains.

And Morrison and Amec have scooped gas projects deal in Wales and the West Country, potentially worth £250m.

Under an alliance agreement, the firms will deliver 2,000km of mains replacement work over the next five years, replacing the old steel pipes with plastic ones.

The initial scheme is worth £125m and kicks in next month, but there is the possibility of a five-year extension to the original contract.

The deal is with Wales & West Utilities, which will carry out a proportion of the work through its own direct labour organisations.

Graham Edwards, Wales & West Utilities' chief executive, claimed: "This alliance will see the beginning of a new way of working. 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 to budget."

The utility company's area spans Wales and parts of the West Country.