Thames Water has awarded an AMP7/8 framework agreement for the supply, metering and export of the company's natural gas portfolio worth an estimated £70 million.
Photo: Biogas boiler at Thames Water Chertsey Sewage Treatment Works
The contract was tendered in the following two separate Lots - Thames Water expressed a preference for multi-Lot applications.
Lot 1 Natural Gas Supply and Metering (£48 million)
The scope of the framework covers the supply of natural gas to Thames Water sites, as well as monitoring and maintainance of its gas meter fleet. The water company’s gas consumption is fairly consistent at around 100GWh per annum - mainly used in the waste water treatment process as well as heating and hot water. Thames currently has 66 AMR meters and one daily metered site.
When the company went out to tender it said it was 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.
Thames also emphasised the importance of maximising the uptime of its meters and that response times and technical support were key, as well as proactive intervention when appropriate, together with the importance of reporting, preferably in real time.
Lot 2 Export of biomethane (£22 million)
The scope of the framework agreement covers the export and sale of biomethane gas generated through Thames Water’s biogas upgrade plants on key waste treatment sites.
The water company is currently producing around 43MWh of biomethane per year but this is expected to increase up to 709 MWh by 2030 due to a planned programme of biogas upgrade plant installations.
Thames said in the tender document it was interested in working with suppliers who wiould be able to optimise revenue, help make informed decisions on green gas certificates and assist it in achieving its Net Zero Strategy, commenting:
“As this is an emerging market, we welcome continuous improvement and innovation throughout the agreement period.”
Initial duration of both contracts is 4 years, with options to extend up to a maximum overall term of 8 years.
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