The contract, awarded by Duke Energy International, will be for the Five Mile Bluff to Port Latta (Stage 2) portion of the pipeline.

The company said the contract is the first awarded for the onshore stage of DEI's 714km pipeline, which will transport natural gas from Longford in Victoria, across Bass Strait and west to Port Latta and south to the Hobart area.

McConnell Dowell's task is to install the 241km portion of pipeline between Five Mile Bluff (north east of George Town) and Port Latta. The pipeline commences at the shore tie-in of the Bass Strait crossing at Five Mile Bluff and will then head south to Rosevale, (west of Launceston). Included in this section is a 2km crossing of the Tamar River at Bell Bay. At Rosevale, the pipeline heads west to Port Latta, and in this section there are 11 horizontal direction drilled crossings.

"Several major companies and consortia submitted bids for the contracts during an extensive six month tender and negotiation process," DEI's Tasmanian Gas Pipeline Project manager, Mr Carl Fisher, said. "We are confident that McConnell Dowell has the expertise, resources and environmental track record to meet our stringent requirements."