Verbrec Ltd Wins $21M Pipeline Upgrade Contract to Support Beetaloo Gas

Verbrec Limited (ASX: VBC) has been awarded the McArthur River Pipeline Bi-Directional Upgrade Project by Northern Territory Government-owned Power and Water Corporation (PWC). The contract carries a total value of approximately $21 million, to be delivered progressively across two stages through to 2028.

The project is set to help unlock first commercial gas from the Beetaloo sub-basin and materially strengthen the security of gas supply in the Northern Territory. The award represents a material, multi-year revenue stream that deepens an existing client relationship spanning more than a decade.

A pivotal project for Northern Territory gas supply

The McArthur River Pipeline upgrade is positioned to support one of the most significant new gas developments in Australia. By enabling commercial gas to flow from the Beetaloo sub-basin, the project addresses a strategic priority for the Northern Territory: securing reliable, long-term domestic energy supply.

The work will be delivered across two distinct stages:

• Stage 1 enables gas to be delivered into the McArthur River Pipeline to backfill supply to the McArthur River Mine, with completion targeted for 2026.

• Stage 2 enables additional production capacity, including bi-directional capability allowing reverse flow of gas into the Amadeus Gas Pipeline at Daly Waters, with completion targeted for 2028.

Verbrec will mobilise an integrated project team to design, procure, fabricate, install, commission and hand over a range of new infrastructure. The scope encompasses:

• A new third-party connection

• A pressure reduction skid

• Metering facilities

• A new gas compression facility at Daly Waters

The contract is structured as separable portions, broken into phases matching the Stage 1 and Stage 2 descriptions. For investors, this phased, milestone-linked structure provides revenue visibility extending through to 2028.

Understanding the Beetaloo Basin and why it matters

The Beetaloo sub-basin is widely regarded as one of Australia’s most significant new gas resources. The Northern Territory Government has identified it as a key shale gas resource, capable of supporting domestic energy security.

Its strategic importance lies in addressing Australia’s forecast east-coast gas shortfalls and underpinning the nation’s longer-term energy future.

After more than a decade of exploration and appraisal, commercial gas production is expected to begin in 2026. The Territory Government estimates the basin could generate over $17 billion in economic value over the next two decades through royalties, employment and business growth, according to its Territory Gas resource.

A decade-long relationship reinforces Verbrec’s reputation

Verbrec has managed the McArthur River Pipeline in the Northern Territory for over ten years for Power and Water Corporation. The new award builds on that established footing rather than marking a fresh entry into the relationship.

The contract is described by the company as an example of its customer-relationship business model, evidencing its reputation as a trusted leader in pipeline engineering, operations and maintenance across Australia. It also positions Verbrec as a key contributor to the infrastructure underpinning the Beetaloo Basin’s development and Australia’s energy security.

The pipeline contract complements a period of rapid expansion at Verbrec, following the completion of the Alliance Automation acquisition that doubled the company’s revenue base to over $100 million and added industrial automation capabilities to its engineering services offering.

Mark Read, Managing Director

“We are thrilled to be entrusted by Power and Water Corporation to deliver this nationally significant infrastructure. This project plays a direct role in unlocking Beetaloo gas and strengthening energy security for the Northern Territory. It showcases exactly the engineering and delivery capability Verbrec brings to the gas market transition.

This vital gas resource will underpin a pipeline of major developments for the state, including power generation, downstream manufacturing and energy intensive industries of the future, including the potential for large-scale data centres.”

The incumbency and reputation reflected in the award may position Verbrec for further engagement as the basin develops, though any such opportunity remains dependent on future activity.

What this means for Verbrec investors

The award delivers a high-value, multi-year contract that builds on a relationship more than a decade in the making, anchored to a nationally significant energy development. The phased delivery structure through 2028 provides a degree of forward revenue visibility, with milestones tied to each separable portion.

The McArthur River Pipeline award lands as part of a broader growth acceleration at Verbrec, with the company’s FY2026 revenue guidance upgrade to $110M-$120M reflecting 41% projected growth across its engineering services portfolio.

Looking ahead, management has framed the Beetaloo development as a foundation for broader downstream activity across the Northern Territory. These forward-looking comments represent the company’s outlook and should not be treated as a guarantee of future work.

Key takeaways for investors include:

• A contract valued at approximately $21 million, delivered across two stages through to 2028

• A foundation built on a 10+ year relationship with Power and Water Corporation

• Exposure to one of Australia’s most significant new gas resources

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