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Jacobs wins program management contract from SoCalGas

Wednesday, Jan 23, 2013

Jacobs Engineering Group Inc. (NYSE:JEC) announced today that it was selected by Southern California Gas Co. (SoCalGas) to provide project management services for the Pipeline Safety Enhancement Program.

“We are pleased to bring Jacobs on board as we embark on the largest natural gas testing and replacement program in SoCalGas’ history”

Officials did not disclose the contract value, but noted that it is a five-year contract with a provision for five one-year extensions. Phase 1A of the Pipeline Safety Enhancement Program consists of pressure testing approximately 360 miles of existing pipelines; replacing approximately 246 miles of the 3,750 mile pipeline system; and upgrading or replacing 173 mainline valves. SoCalGas is awaiting approval of the Pipeline Safety Enhancement Program from the California Public Utilities Commission (CPUC), which is expected in mid-2013. The scope of the pipeline testing and replacement plan is subject to change by the CPUC.

In alignment with SoCalGas’ ongoing focus on safety as a top priority, the Pipeline Safety Enhancement Program was developed to comply with state regulations that require natural gas transmission pipeline operators to submit plans for replacing or pressure testing all natural gas transmission pipelines that have not been pressure tested.

“We are pleased to bring Jacobs on board as we embark on the largest natural gas testing and replacement program in SoCalGas’ history,” said Rick Morrow, SoCalGas’ vice president of engineering and operations staff.

In making the announcement, Jacobs Executive Vice President Gary Mandel stated, “We are pleased to be selected by SoCalGas to manage this important program in southern California. With our corporate headquarters located in Pasadena, many Jacobs employees are SoCalGas customers, and we are committed to leveraging our capabilities to support SoCalGas in their mission to deliver safe and reliable natural gas.”

Source: Business Wire

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