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Wood Group Commences $250m Central Area Transmission System Contract

Wood Group Commences $250m Central Area Transmission System Contract

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17 December 2015

Wood Group has commenced a new contract with CATS Management Limited, a wholly owned subsidiary of Antin Infrastructure Partners, to provide operating services for the Central Area Transmission System (also known as CATS) in the North Sea. Wood Group PSN will have day-to-day responsibility for the terminal and pipeline for up to 10 years, under the $250m contract.

A dedicated Wood Group Kenny team based in Glasgow will be integrated into the operating services team to provide pipeline management expertise. Fabric maintenance and industrial services will be provided by Wood Group Industrial Services.

The contract extends Wood Group’s presence in the North East of England, where the company already employs approximately 500 people in Teesside and Tyneside.

CATS transports gas through 404km of pipeline from the Central North Sea to a terminal in Teesside in the UK where it is then processed on behalf of major North Sea gas producers. The system currently serves 34 producing fields with a high portion of contracted revenues. In 2014, CATS delivered almost 8 billion cubic metres of gas to UK markets, representing 22% of UK gas production and 10% of demand.

James Crawford, WGPSN's UK and Africa managing director, said: "Today marks the beginning of our long-term partnership with CATS Management Limited and Antin Infrastructure Partners. Our commitment is to working collaboratively and leveraging our duty holder capabilities and expertise to develop and grow CATS. The transition of operatorship has been a smooth and safe process and we are delighted to welcome the retained CATS workforce to the Wood Group family.”