Amec and Morrison Utility Services have been awarded a five-year extension to the Western Gas Alliance (WGA) mains replacement contract by Wales & West Utilities (WWU).

The contract extension, worth £40m per year, will run until 2018 and follows Ofgem's Price Control Review which has set financial challenges for each of the eight Gas Distribution Networks. The programme of work will replace 420km of gas mains each year and complete 40,000 customer gas connections.

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Graham Edwards, Chief Executive, Wales & West Utilities, commented: "Since the Alliance launched in 2008, there has been a commitment by WWU, Amec and Morrison Utility Services to build strong working relationships, share best practices and work towards the common goal of delivering the extensive programme of work on time and to budget. There has also been a clear commitment to health, safety and environmental management, and the standard of customer service has gone from strength to strength."

Marc Boulter, Managing Director of Amec's Transmission and Distribution Europe business, said: "Wales & West Utilities' decision to extend the contract is a reflection of the quality of service provided since the initial contract began. This successful Alliance will remain focused on delivering WWU's business objectives and on meeting their mains replacement programme commitments."

(CD/JP)