PASADENA, Calif.--(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.