Water company to buy up to 40 per cent of dredge pipe floats in South Australia

Water company PGL Energy is to buy 50 per cent and the rest of the float will be purchased by a third party in South Australian.PNG Energy, which operates in South America, Africa and South Asia, is in discussions with the state’s largest hydro-meteorological authority, which owns the dredge pipes, about buying 50 per of the floating barges, the South Australian Government said.

The company said it would provide the South Australia Government with a “consultation and support service” in order to secure a purchase price of $50 million for the dredging barges.

PNG said it had signed an agreement with South Australian Water and Power to purchase 25 per cent, with the remainder being paid to a third-party in the future.

The deal will be announced in the coming weeks.

The South Australian Energy and Water Resources Authority said the purchase would create over 300 jobs.

“The South Australia-based company will be responsible for the construction and operation of the barges for the PGL-owned dredge and pipeline dredging projects,” the authority said in a statement.

“This is expected to provide significant employment and revenue to South Australia’s local community.”

“South Australia will continue to be the preferred market for PGL’s dredge projects, with our current market share being approximately 60 per cent.”PNG has previously announced it would buy a portion of the dredged pipeline floats.

The firm is expected by the end of next year to have bought up to 25 per of its dredged barges and the remainder of the remaining barges will be bought by a contractor.”PNG is committed to meeting the growing demand for its dredge product for both domestic and international markets, as well as ensuring that all the water that it dredges for the public is treated in accordance with local regulatory requirements,” the company said in its latest quarterly financial results.PIPE FLOATS, PIPE HYDRAULIC PIPES, DUNGE PIPELINE DEDGE PILOTSSource: Independent News Service

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