SINGAPORE - Energy solutions provider Keppel Infrastructure Holdings has secured a contract to design, build and operate pipe racks on Jurong Island worth about $40 million.
The contract was awarded by JTC Corporation (JTC) to Pipenet, a wholly owned subsidiary of Keppel Infrastructure, for the construction of pipe racks along parts of Banyan Drive, Banyan Avenue and the Jurong Island Highway that will facilitate pipeline connection to the Jurong Rock Caverns.
Slated to be completed by 2020, the project will be operated by Pipenet for 15 years, with JTC having the option to extend for another 15 years.
According to the company, the transaction will not have any material impact on the earnings per share and net tangible asset per share of Keppel Infrastructure's parent company, Keppel Corporation, for the financial year ending Dec 31, 2019.
Pipenet owns and operates an extensive pipeline corridor network on Jurong Island, with the majority stretch running along the Jurong Island Highway.
The existing corridor runs through the chemical cluster at the Sakra region. Pipenet provides pipe corridor rental services to companies that need to transport chemical feedstock and products on the island.
It also offers utilities services such as steam, de-mineralised water and fire-fighting water to companies on the island.