TORONTO, June 30, 2016 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today that it has been awarded a $250 million contract by Union Gas Limited for work on its Dawn-Parkway Expansion Project in Ontario. Aecon was also awarded a four-year Master Service Agreement (MSA) contract with Spectra Energy Transmission (Spectra Energy) for pipeline facilities work in Western Canada.
Aecon's scope of work at the Union Gas Dawn-Parkway Expansion Project primarily relates to the construction of natural gas compressor facilities at its existing Bright, Dawn and Lobo compressor station locations across southwestern Ontario. Work has commenced and is scheduled to be complete by the fourth quarter of 2017. The contract value will be added to Aecon's Energy segment backlog in the second quarter of 2016.
The current scope of work for the MSA contract by Spectra Energy includes construction work at its compressor stations and related labour on pipeline facilities on its natural gas transmission system in British Columbia. Work on the four-year MSA, which includes future renewal provisions, has begun and is a recurring revenue contract.
"Aecon's energy segment demonstrates strong backlog and diversification as we continue our commitment to delivering end-to-end turnkey solutions for our clients," said Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc.
"Building partnerships and alliances forms the backbone of our business, and we look forward to working on these essential programs as we continue our strategic alliance with Union Gas and Spectra Energy in both Eastern and Western Canada," said Mark Scherer, Executive Vice President, Energy."
Aecon Group Inc. (TSX: ARE) is a Canadian leader and partner-of-choice in construction and infrastructure development. Aecon provides integrated turnkey services to private and public sector clients in the Infrastructure, Energy and Mining sectors and provides project management, financing and development services through its Concessions segment. Aecon is also pleased to be consistently recognized as one of the Best Employers in Canada. For more information, please visit www.aecon.com and follow us on Twitter at @AeconGroup.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.