Jacobs Wins Program Management Contract from SoCalGas
January 22 2013 - 7:45AM
Business Wire
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.
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.”
Southern California Gas Co. (SoCalGas) has been delivering
clean, safe and reliable natural gas to its customers for more than
140 years. It is the nation’s largest natural gas distribution
utility, providing service to 20.9 million consumers connected
through nearly 5.8 million meters in more than 500 communities. The
company’s service territory encompasses approximately 20,000 square
miles throughout central and Southern California, from Visalia to
the Mexican border.
SoCalGas is a regulated subsidiary of Sempra Energy (NYSE:
SRE).
Jacobs is one of the world's largest and most diverse providers
of technical, professional, and construction services.
Statements made in this release that are not based on historical
fact are forward-looking statements. We base these forward-looking
statements on management’s current estimates and expectations as
well as currently available competitive, financial and economic
data. Forward-looking statements, however, are inherently
uncertain. There are a variety of factors that could cause business
results to differ materially from our forward-looking
statements. For a description of some of the factors which may
occur that could cause actual results to differ from our
forward-looking statements please refer to our 2012 Form 10-K, and
in particular the discussions contained under Items 1 - Business,
1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's
Discussion and Analysis of Financial Condition and Results of
Operations. We do not undertake to update any forward-looking
statements made herein.
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