Verbrec secures $16 million in fresh energy security contracts across five states
Verbrec (ASX: VBC) has executed a suite of new contracts worth approximately $16 million, spanning engineering, procurement, construction, operations and automation work across the energy sector.
The awards lift Verbrec’s total Energy Security project awards to over $36 million since the start of the financial year, a figure that includes the previously announced Bi-directional project for Power & Water Corporation. Taken together, the recent contracts involve seven clients across Queensland, South Australia, Victoria, Western Australia, the Northern Territory and Papua New Guinea.
The breadth points to strengthening sales pipeline conversion and recurring revenue momentum. Verbrec has flagged this aggregation as market sensitive, noting it may inform a view of the company’s revenue and profit performance.
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Breaking down the $16 million in new awards
The new work splits across pipeline inspection, owner’s engineer roles, operations and maintenance, automation and early-stage design. The table below summarises the principal award streams.
| Award | Scope | Location | Value |
|---|---|---|---|
| In-line inspection facilities (EPC) | Bypass line, pig launcher/receiver, intelligent pigging | Southern QLD | $6.8M |
| Owner’s Engineer, pipeline realignment | EPC-phase assurance | SA | $2.7M |
| Operations & maintenance | Reactive maintenance plus 2-year extension on four pipelines | NT/QLD/VIC | $3.2M |
| Alliance Automation, electrical, control & cyber | OT cyber uplift, MCC, SCADA migration | Roma, QLD | $1.6M |
| Early-stage design, compression/pipeline | Detailed design, licensing, environmental | Mid-west WA | $1.3M |
The flagship $6.8 million in-line inspection project explained
The largest single award is a Works Agreement for the engineering, procurement and construction of the first in-line inspection facilities on a 150km pipeline in southern Queensland. Verbrec’s scope spans:
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Detailed engineering design, procurement, fabrication and construction of a bypass line
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Pig launcher and receiver facilities across three sites
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Cleaning, gauging and intelligent pigging runs to assess the internal condition of the pipeline
The contract carries a fixed lump sum value of $6.8 million, with works set to be completed by 31 March 2028.
Notably, the pipeline is operated under a multi-year operations and maintenance contract. The overlap reinforces Verbrec’s recurring-revenue contracting model, where operating relationships tend to generate repeat engineering and construction work.
What is intelligent pigging?
For investors, the relevance is structural. Verbrec’s operations and maintenance contracts are multi-year recurring revenue streams for the company.
Why Australia’s energy reinvestment cycle underpins the Verbrec story
The contract flow sits against a broader structural tailwind in Australia’s gas system, which is entering a period of sustained reinvestment.
AEMO’s 2026 Gas Statement of Opportunities 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. New production, storage and transportation investment is required.
The Beetaloo Sub-basin illustrates the scale of the opportunity. The Northern Territory Government describes it as a world-class resource with the potential to generate over $17 billion in economic value over the next two decades through royalties, employment and business growth. Beetaloo Basin gas-powered data centre projects could attract up to $40 billion in private investment, with as many as a dozen proponents considering sites near Darwin and other remote Territory locations.
Verbrec delivers services across the full life cycle of energy infrastructure and assets, positioning it to capture this reinvestment wave. The company’s pipeline teams have been involved in installing thousands of kilometres of oil, gas, water and slurry pipelines across Australia, New Zealand, PNG and the Pacific, and the company currently operates over 2,000km of gas pipelines across Australia.
The Beetaloo Basin pipeline contract with Power and Water Corporation, announced in June 2026, is the anchor piece of this reinvestment cycle for Verbrec, covering a phased upgrade to the McArthur River Pipeline across two stages through to 2028 and representing the single largest individual award the company has disclosed this financial year.
Alliance Automation and the recurring cyber security angle
Verbrec’s fully owned subsidiary, Alliance Automation, secured electrical, control system and cyber security awards worth a combined $1.6 million with key energy companies in Queensland. The projects include an operational technology cyber security uplift programme, design, supply and control system engineering of the motor control centre, and migration of the SCADA system for Roma-based gas assets.
Alliance Automation is described as a turn-key, whole of life-cycle provider of operational technology cyber security solutions. Cyber security uplift work of this nature is recurring, driven by evolving regulatory obligations and the threat environment, and the company has flagged it is well placed to be awarded further works flowing from these programmes.
Verbrec’s growing renewable gas credentials
Verbrec has completed the Western Australian Biomethane Potential Study, set to be published by the Department of Primary Industries and Regional Development (DPIRD), Government of Western Australia. Verbrec is the 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, what that resource is worth, and what is required for the first projects to be built.
The work builds on an established sector track record, including:
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Engineering and construction support to Clarus’ First Renewables for New Zealand’s Broadlands Biogas Upgrade, the first facility of its kind in New Zealand
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A detailed feasibility study for a new Auckland biogas facility, announced in H1 FY2026
Verbrec has stated it is well placed to be the engineering partner of choice as the renewable gas sector scales across Australia and New Zealand.
Verbrec plays a vital role in delivering the infrastructure underpinning Australia’s energy security.
What the contract momentum means for investors
The $36 million-plus in Energy Security awards since the financial year began signals pipeline conversion strength and a revenue mix combining one-off EPC work with multi-year recurring operations, maintenance and cyber revenue streams.
The flagship in-line inspection project runs to 31 March 2028, offering a degree of forward revenue visibility. Verbrec’s own framing is that individual contracts are not financially material, but the aggregation is market sensitive as it may inform a view of revenue, sales pipeline conversion and profit performance.
Looking ahead, the company has indicated it is positioned for potential follow-on work across owner’s engineer roles, cyber uplift programmes and future compression stages in Western Australia, subject to client decisions.
The FY2027 revenue outlook of $140 million to $160 million, introduced alongside confirmed FY2026 guidance, provides the broader financial frame for assessing what sustained contract conversion at this pace means for the company’s medium-term earnings trajectory.
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