London (Platts)--19Dec2012/559 am EST/1059 GMT

UK system operator National Grid said Wednesday it has awarded GBP3.1 billion ($5.05 billion) worth of contracts to Balfour Beatty Utilities Service Limited, Morrison Utility Services and Skanska, to deliver investment in its four gas distribution networks in the UK over the next eight years, National Grid said Wednesday.

Balfour Beatty has been awarded contracts to operate in National Grid's gas distribution networks in the northwest and West Midlands regions of England. An unincorporated joint venture between Morrison Utility Services and Skanska has been awarded contracts to operate in the east of England and London networks.

The Balfour Beatty contract is worth GBP1.2 billion and the Morrison/Skanska contract GBP1.8 billion. The GBP3.1 billion figure results from rounding up, a National Grid spokesperson said. The figures are "nominal", which means they take into account inflation over the eight-year period of the contracts and reflect what National Grid expects to actually pay out over this time frame.

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The contracts will come into force on April 1, 2013, and will involve working on the company's gas mains replacement program in addition to a number of other key activities.

National Grid, together with these new partnerships, will be working to meet new targets set by UK regulator Ofgem, the company said. These targets come into force on the same day as the new contract and cover the same eight-year period.

--Ross McCracken, ross_mccracken@platts.com
--Edited by Jonathan Fox, jonathan_fox@platts.com

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