McConnell Dowel Awarded Pipeline Contract
McConnell Dowell Corp. in a joint venture with Grinaker-LTA was awarded a US $250 million contract for the Mozambique-to-South Africa Gas Pipeline. Grinaker-LTA is McConnell Dowell's major shareholder, with 63%. In turn, Grinaker-LTA is a unit of South African construction company Aveng Ltd.
The contract covers engineering, procurement, management, construction and commissioning of an 865-kilometer gas pipeline from Mozambique to South Africa. The deal was initially announced at the end of January. A formal contract was signed this past Wednesday.
The contract forms part of a US $1.2 billion natural gas project led by Sasol Ltd. and the governments of South Africa and Mozambique. This significant gas pipeline contract is the first for McConnell Dowell in the African continent and also a first for McConnell and Grinaker-LTA in joint venture. McConnell Dowell's portion of the joint venture is 30% of the contract value.