Centrica has picked engineering firm Costain as the main contractor for its £84 million project at the Barrow gas terminals in Cumbria.
Its generation business Centrica Energy is building a 1.1km underground pipe between the north and south terminals because of EU laws banning the sale of a refrigerant called freon from the end of 2014.
Freon is used to cool the gas piped to the south terminal as part of the process to clean it before it can be pumped into the National Grid.
Building has already started at the pipe which is set to be ready by the end of 2015.
Andrew Wyllie, Chief Executive of Costain said: “The Barrow Gas Terminals provide enough gas to meet the demand for 1.5 million homes in the UK and are key to securing the nation’s future energy needs.”
Barrow’s gas terminals (pictured) are responsible for around 8% of the UK’s gas supply.