Balfour Beatty has been awarded two eight-year contracts to upgrade the UK's gas distribution network.
The new Gas Distribution Strategic Partnership contracts, worth a combined £1.2bn, cover the North West and West Midlands and replace the company's current gas contract in the North West.
The deal involves the design and installation of modern polyethylene gas distribution mains to replace aging metal pipes, as part of a programme of work agreed between National Grid and the Health & Safety Executive. Balfour will invest £55m of working capital in the contracts.
The new agreement is in addition to the company's existing electricity alliance contract with National Grid, which involves the ongoing upgrade and refurbishment of the high voltage transmission network owned by National Grid across England and Wales.
Ian Tyler, chief executive of Balfour Beatty, said: "The award of these new contracts builds on our ongoing strategic focus in the power market and is an excellent example of partnership with our clients to deliver continuing value as well as ongoing certainty to a core element of the UK's infrastructure."
Balfour's share price slipped 1% this morning to 269p.