NZ-listed company’s share is 30%
McConnell Dowell Corp Ltd has received a letter of intent from Sasol Ltd for a Mozambique-South Africa gas pipeline contract worth $US250 million, for the engineering, procurement, management, construction & commissioning of 865km of 26in diameter gas pipeline.
McConnell Dowell, which originated in New Zealand as a construction & engineering company and is still listed here, has been based in Australia for several years and now has a South African company, Grinaker-LTA, as its major shareholder.
The contract is the first for McConnell Dowell in Africa and also a first for McConnell Dowell and Grinaker-LTA in joint venture.
McConnell Dowell’s portion of the joint venture is 30% of the contract value. The formal contract is expected to be awarded within three weeks, and will increase the company’s work in hand to $A600 million.