Thames Water has gone out to tender with an AMP7 framework contract for the supply and export of natural gas with an estimated total value of £70 million.
Thames is the largest water and wastewater services company in the UK, providing services to 15 million customers across London and the Thames Valley.
The water company is looking to procure a framework agreement for the supply, metering and export of their Natural Gas portfolio. The initial contract term is 4 years with an option to extend for a further 4 year period.
The contract is being tendered in two separate Lots.
Lot 1 - Natural Gas Supply and Metering (£48,000,000) - covers a framework agreement for the supply of natural gas to Thames Water sites, as well as monitoring and maintainance of its gas meter fleet. Thames’ gas consumption is fairly consistent at around 100GWh per annum which is mainly used in the waste water treatment process as well as heating and hot water. The utility currently has 66 AMR meters (one daily metered site).
Thames Water said it is looking for a proactive supplier to collaborate with to improve gas usage efficiency without penalty as well as optimise prices, whether through hedging or other means.
The scope of Lot 2 - Export of biomethane (£22,000,000) - is a framework agreement for the export and sale of biomethane gas generated through the water company’s biogas upgrade plants on key waste treatment sites. Thames Water is currently producing around 43MWh of biomethane per year – however, this is expected to increase up to 709 MWh by 2030 due to a planned programme of biogas upgrade plant installations.
Thames said it is interested in working with suppliers who will be able to optimise revenue, help make informed decisions on green gas certificates and assist the company in achieving its Net Zero Strategy.
Time limit for receipt of tenders or requests to participate is 5 September 2022 – click here to access the tender documentation.
Want to know more about Thames Water’s AMP7 investment plans? Winning new business with the water companies in England and Wales in AMP7 and AMP8 between now and 2030?
Our report Complete AMP7 Contracts Tier 1 Alliances and Tier 1 Contractors April 2020 - 2025 contains details of the companies, key investment drivers, the alliances, the contracts they’re already working on in the UK water sector, together with hundreds of key named contacts. Click here for more information and details of how to order.
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