Key Highlights

  • Verbrec has executed an agreement valued at $6.8 million to undertake engineering, procurement and construction of in-line inspection facilities on a 150km Queensland gas pipeline, due for completion by 31 March 2028.
  • The company has been awarded pipeline, compression and operations contracts across Queensland, the Northern Territory, Victoria, South Australia and Western Australia valued at approximately $7.2 million.
  • Alliance Automation, Verbrec's fully owned subsidiary, has secured electrical, control system and cyber security contracts with Queensland energy companies worth a combined approximately $1.6 million.
  • These awards bring total Energy Security project wins to more than $36 million since the start of the financial year, spanning seven clients across Queensland, South Australia, Victoria, Western Australia, the Northern Territory and Papua New Guinea.

Verbrec Limited (ASX:VBC) has provided a Business update summarising recent contract awards across its energy security operations. Shares in Verbrec rose 5.88 percent to $0.18 on the ASX following the announcement, up $0.01 on the day. The company said the projects outlined, together with a previously announced bi-directional project for Power & Water Corporation, bring total Energy Security project awards to more than $36 million since the commencement of the financial year, spanning seven clients across Queensland, South Australia, Victoria, Western Australia, the Northern Territory and Papua New Guinea.

$6.8 Million In-Line Inspection and Bypass Project

Verbrec has entered into a Works Agreement to undertake the engineering, procurement and construction of facilities required for the first in-line inspection of a 150 kilometre pipeline in southern Queensland. The company's scope covers detailed engineering design, procurement, fabrication and construction of a bypass line and pig launcher and receiver facilities across three sites, followed by cleaning, gauging and intelligent pigging runs to assess the pipeline's internal condition. The contract carries a fixed lump sum value of $6.8 million, with works scheduled for completion by 31 March 2028. The pipeline is operated under a multi-year operations and maintenance contract, which the company said further establishes the importance of this contracting model to its continued growth.

Additional Energy Security Project Awards Worth $8.8 Million

Verbrec has been appointed Owner's Engineer for a pipeline realignment construction project in South Australia, valued at $2.7 million, acting in the client's interests across the engineering, procurement and construction phase, including design review, safety workshops, factory acceptance testing and part-time site surveillance through an anticipated 14-month construction phase.

The company has also secured annual maintenance services contracts in the Northern Territory and Queensland, along with an extended two-year operations and maintenance agreement for four pipelines in Victoria, together valued at $3.2 million. These services include pipeline surveillance and patrolling, cathodic protection system monitoring, coating surveys, and management of third-party works. Verbrec said it now operates over 2,000 kilometres of gas pipelines across Australia, with its operations and maintenance contracts representing multi-year Recurring Revenue streams.

Alliance Automation, Verbrec's fully owned subsidiary, has secured electrical, control system and cyber security contracts for operating Assets with key Queensland energy companies worth a combined approximately $1.6 million, including an operational technology cyber security uplift programme and SCADA system migration for Roma-based gas assets. Separately, Verbrec has commenced early-stage design work on compression and pipeline projects in Western Australia valued at $1.3 million, covering detailed design, pipeline licence advice, environmental studies and landholder liaison in the state's mid-west region.

Biomethane Potential Study Completed

Verbrec has completed the Western Australian Biomethane Potential Study, to be published by the Department of Primary Industries and Regional Development. Verbrec acted as lead author, responsible for the engineering, techno-economic assessment and energy transition strategy, working alongside Northmore Gordon and Oakley Greenwood. The study assesses how much renewable gas Western Australia could produce from its own waste, sewage and crop residues, and what would be required for the first projects to be built. The company said this builds on its established record in the sector, including engineering and construction support for a biogas upgrade Facility in New Zealand and a feasibility study for an Auckland biogas facility.

Market Context for Energy Security Investment

The company pointed to AEMO's 2026 Gas Statement of Opportunities, which forecasts gas shortfall risks under extreme peak day Demand conditions in southern Australia from 2029, with additional Supply needed in most scenarios from 2030 as production from legacy southern fields declines. Verbrec also highlighted the Beetaloo Sub-basin as a key growth area, noting the Northern Territory Government's description of the Basin as a resource with potential to generate over $17 billion in economic value over the next two decades, with associated gas-powered data centre projects potentially attracting up to $40 billion in private investment.

Conclusion

Verbrec has continued to build its energy security contract book, securing $16 million in new awards spanning pipeline inspection, operations and maintenance, and cyber security services across five states and territories. Combined with previously announced work, the company's Energy Security project awards now exceed $36 million since the start of the financial year. With Australia's gas system facing forecast supply constraints later in the decade and significant Investment anticipated around projects such as the Beetaloo Sub-basin, Verbrec has positioned its pipeline, automation and cyber security capabilities to benefit from continued reinvestment in the country's energy infrastructure.