- CIMIC Group’s (CIM) UGL business has won several contracts in the utility sector, which have a combined value of more than $112 million
- The contracts are with TransGrid, Powerlink and United Energy
- UGL says the contracts will play out over a multi-year period and will commence before the end of 2020
- Despite the positive news, CIMIC shares have dropped 0.37 per cent to trade at at $26.67 per share
CIMIC Group’s (CIM) subsidiary, UGL, has won several contracts in the utility sector, which have a combined value of more than $112 million.
The contracts will be executed over multiple years and commence by the end of the year.
The new contracts are located in NSW, Queensland and Victoria, and the are majority from TransGrid, which is the manager and operator of the high voltage electricity transmission in NSW and ACT.
UGL is an engineering company that provides construction, maintenance and asset management services to the rail, resources and infrastructure sectors.
One of the new contracts includes designing and constructing a 330,000 volts switchyard in the Snowy Mountains for TransGrid. This contract includes building a 10-kilometre transmission line to connect the switchyard and the Snowy 2.0 pumped-hydro project cable yard.
TransGrid also needs 52 megawatts to 78 megawatts per hour Tesla battery installed at the Wallgrove Substation in Sydney’s west.
UGL will also install a substation to connect the solar farm in Gunnedah to TransGrid’s network in the state.
Queensland and Victoria contracts
The Queensland contract covers the design and construction work for Powerlink’s substations at Lilyvale and South Gladstone.
While the Victoria contract is for the design and construction work for United Energy, this includes the installation and replacement of feeder schemes at substations and safety mechanisms.
CIMIC CEO Juan Santamaria is pleased with the new contracts.
“We’re proud to work with these clients to connect future renewable projects to the grid and supply new energy into the network. In doing so, we’ll also create job and procurement opportunities for regional communities,” he said.
“These new contracts in the utility sector highlight UGL’s power and renewables capability and expand on our well-established relationships with TransGrid, Powerlink and United Energy,” UGL Managing Director Doug Moss added.
Despite the positive news, CIMIC shares have slightly dropped 0.37 per cent and is trading at $26.67 per share at 2:02 pm AEDT.