This tunnelling contract, worth approximately £200 million, forms part of the additional £5.6bn of network investment needed in the UK which the company identified at its preliminary results presentation in May this year, increasing forecast investment to some £22bn over the next five years.
The new tunnelled cable network that National Grid will build under London will help meet increased energy flows across the city. It will also support increasing electricity demand, including the new Crossrail and the replacement of existing buried cables in London.
National Grid’s UK construction director, Michael Dyke said:
“We are delighted to have Costain on board to deliver this valuable work, and they will add to the overall strength of the construction family we have worked hard to create at National Grid. It’s our job to make sure we provide a reliable electricity network so people who live and work in the UK can enjoy a safe and secure supply.
“Our ambitious tunnelling programme will be built below the existing network, minimising disruption while making sure we continue to deliver a reliable service to millions of people and businesses. As well as replacing the existing system and increasing the capacity of the network, the new tunnels will make it easier for us inspect and maintain these circuits safely and efficiently well into the future,” added Michael.
The contract includes the design and build of two cable tunnels between 3m and 4m in diameter, running between 20m to 60m below ground. The first 20 km tunnel will run from National Grid’s substation at Willesden in North West London via Kensal Green, St. John’s Wood and Islington to the substation at Hackney in East London, close to the new Olympics site.
The second 12 km tunnel will run south from Kensal Green to the substation at Wimbledon in South West London. The contract award also includes the design and build of associated head-houses and the installation of ventilation equipment.
Works will start later this year, with the tunnelling being completed by the end of 2014 and the full energisation of the new cables anticipated by November 2018.
Andrew Wyllie, Costain Group CEO, said: “We are delighted to have been appointed by National Grid for this important project, which will help to upgrade the nation’s power infrastructure to meet future needs. This major award demonstrates Costain’s ability to provide cost-effective engineering and technology-led solutions in this vital sector. In addition, Costain also welcomes the opportunity to develop a long-term partnership with National Grid.”
Two additional contracts were awarded earlier this year to Arup and Mott McDonald for the programme and project management of the scheme respectively.
-Ends-
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Notes to Editors:
National Grid – www.nationalgrid.com
National Grid (LSE: NG; NYSE:NGG) is an international electricity and gas company and one of the largest investor-owned energy companies in the world.
National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high pressure gas transmission system in Britain and its distribution business delivers gas to 11 million homes and businesses. National Grid also has a number of related businesses such as LNG importation and storage, land remediation and metering.
In the US, National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers. It is also the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.