Aecon joint venture secures $282mn Enbridge pipeline replacement contract

It has been revealed that SA Energy, a 50/50 joint venture between leading Canadian construction companies Aecon and Robert B Somerville Co., has secured a $282mn contract from Calgary-based pipeline operator Enbridge for work on its Line 3 replacement project in Manitoba.

The agreement will require SA Energy to construct 92.2km of pipeline for Spread 8 and 96.5km of pipeline for Spread 9, helping to extend the project to the Canada, US border.

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“This award, combined with Aecon’s recent major project wins, will see backlog reach record levels in the second quarter of 2018 and demonstrates our proven capabilities delivering a diverse range of projects through Aecon’s Industrial segment,” said John M. Beck, President and Chief Executive Officer, Aecon Group.

The latest contract has been secured following the success of SA Energy’s work on Spreads 3 and 4 of the project, completing construction of a 261km stretch of pipeline in Saskatchewan.

“SA Energy Group’s experience executing Spreads 3 and 4 with outstanding safety and quality performance, engagement of Indigenous Peoples and regulatory compliance, highlights the joint venture’s proven capability to deliver key components of this project,” said Mark Scherer, Executive Vice President, Aecon Industrial.

“The award of Spreads 8 and 9 solidifies SA Energy Group as a partner-of-choice for Enbridge and Aecon looks forward to further mobilizing pipeline capabilities while working with our partners on this important project.”

Works on the pipeline are set to commence in August 2018, with completion expected before the year’s end.