By Renée Francoeur
April 14, 2015 – Aecon Group Inc. has been awarded contracts by five clients for work in Aecon’s energy segment in Ontario. The value of work is about $93 million in hard backlog and about $85 million in annual recurring revenue, Aecon announced recently.
Enbridge Gas Distribution awarded Aecon a pipeline facilities project for work at 11 Enbridge sites, valued at $40 million. According to Aecon, work has begun and is expected to be complete in Q3 of 2015.
Under the terms of the second contract—valued at $53 million—Aecon’s scope of work includes the construction of a new compressor station at Union Gas’ Lobo facility, northwest of London, Ontario. Work is expected to start in Q2 of 2015 and is scheduled to be complete by Q4 of 2016.
Additionally, Aecon has signed three Master Service Agreements (MSAs) with clients in the power sector:
• A 13-year MSA valued at about $25 million annually for engineering, procurement and construction services;
• A four-year MSA valued at about $30 million annually for the design and construction of underground and overhead hydro installations and replacements; and
• A three-year MSA worth about $30 million annually for construction outage services, plant modification and EPC capital projects.
“These contracts illustrate the strong pipeline of diverse work Aecon has through our core clients in the energy sector,” said Teri McKibbon, Aecon Group’s president and CEO. “Supplier-of-choice arrangements and alliance agreements are a key part of Aecon’s strategy and representative of the unique way we strategically partner with our clients.”