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- Industrial service providers Downer EDI will expect to work at two major Queensland power stations over the next five years after landing a contract with CS Energy
- The company will plan and execute upgrades including asset management, engineering, maintenance and budgeting at the Callide and Kogan Creek power stations
- The contract is slated for signing early next month and will take effect immediately
- Most recently, Kogan Creek underwent a $90 million upgrade through 44 contractors and Callide underwent a $49 million 270 contractor upgrade job
Downer EDI has been nominated by CS Energy to overhaul its operations in Queensland.
In a five year contract, Downer will provide complete overhaul and capital works services as the energy supplier’s Callide and Kogan Creek power stations.
The Callide power station is located in the Mount Murchison region, while Kogan Creek is located in the Brigalow region of the state.
Early last month, news of a non-specific upgrading job at Kogan Creek broke – a project that will cost over $90 million. The 44 contractors and 77-day work job was slated to run until mid-September.
The last upgrade to the project site happened in 2016, giving a potential three major upgrades since the work site commenced operations in 2007.
Callide’s overhaul has a different history, however. A separate $49 million 270-contractor job, including electricians, boilermakers, rigger, fitters, welders, scaffolders and crane drivers, faced a two-day strike late last year.
Mitsubishi Hitachi Power Systems workers onsite took ‘protected industrial action’ during negotiations, however, the project still steered towards a December completion.
Today, Downer CEO Grant Fenn expressed pleasure to take part in assisting CS Energy in working in the National Electricity Market.
“We are delighted to be selected for such a significant long-term partnership by CS Energy for the Callide B and C and Kogan Creek power stations,” he said.
“This contract strengthens our position as a market leader in the delivery of maintenance services for the power generation sector,”
Specifically, Downer will conduct the planning and execution of the planned upgrades. The company will also complete engineering, asset management, asset strategy planning, maintenance and predicting costs over the project’s life span.
The official signing of the contract is expected to be carried out in early September and take immediate effect.
“We look forward to working closely with CS Energy and providing efficient and cost-effective solutions that are grounded in a strong culture of safety and continuous improvement across their power station operations,” Grant Fenn concluded.
Shareholders in Downer EDI have reacted positively this morning, increasing the share value by 2.87 per cent to trade at $7.89 apiece.
Downer EDI’s market cap is currently valued at $4.561 billion.
