Northern Gas Networks agrees £15m outsourcing deal

NORTHERN GAS NETWORKS (NGN) has agreed a £15m deal with Penspen to cover all mechanical maintenance work required across the gas distribution network.

36 mechanical maintenance staff will transfer over to Penspen as part of the agreement, which starts this month and runs for three years.

It has been described as “a significant move” for NGN as it marks the first time that a gas distributor in the UK has outsourced all of its mechanical maintenance requirements.

NGN will retain maintenance supervisory and managerial staff who will be ensuring safety standards, technical compliance and quality control is met.

Tim Harwood, head of major projects and maintenance at NGN, said: “This is an exciting move for our business, as we continue to modernise and work in a smarter and more efficient way. Other gas distribution networks will certainly be taking notes, and we could see this model adopted in other parts of the UK in the coming years.

“Penspen has been appointed after a long and thorough tender process. As experts in the maintenance of pipelines and associated plant equipment they have a strong combination of technical and commercial acumen, with highly skilled employees, supported by the company’s own in-house training school.”

NGN delivers gas to 2.7 million homes and businesses across the North of England and provides the region’s rapid response service for customers who smell gas at home or work.

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