GAS plant work can be a major catalyst in driving an engineer’s recovery from North Sea challenges and strike action, bosses have claimed.

The Wood Group says a deal to help mastermind the Central Area Transmission System (CATS) offers an avenue to cultivate fresh growth.

Wood Group provides engineering and construction management for oil, gas and renewable energy projects, and its optimism came as the business, hit by project delays and staff pay walk-outs, revealed lower revenues for the six months to June 30.

However, officials say CATS, based at Seal Sands, near Billingham, can provide salvation.

The CATS terminal is led by majority owner Antin Infrastructure Partners and moves gas from the Central North Sea to Teesside, with Wood Group managing day-to-day work.

Earlier this year, The Northern Echo exclusively revealed bosses said the site was “less than halfway through its life” and could operate for at least another 20 years after they secured deals to process gas from four new North Sea fields.

The terminal will look after supplies from the Culzean development, which is due to meet around five per cent of total UK gas demand by 2020, as well as gas from the Stella, Caley and Shaw North Sea sites.

Referring to CATS’ potential, Robin Watson, chief executive, said: “Our performance reflects a challenging oil and gas market.

“We have continued to focus on what we can control and what we can manage (as) lower oil prices have endured and activity has fallen.

“The North Sea remains very challenging, however, we have successfully renewed existing contracts and are maintaining our leading position in maintenance and brownfield engineering.

“Our position operating CATS is progressing well and we see near-term growth potential following this model, as further new entrants appear.”

According to Wood Group’s latest financial results, total revenue was down 16.6 per cent to £1.97bn in the six month period, with profit 63.2 per cent down to £34.3m.

The figures came as the company continued efforts to end a union stalemate over pay and allowance claims.

Unite and RMT say workers, who have downed tools for 48-hours and 24-hours, face cuts of up to 30 per cent.

Mr Watson added: “We are focused on resolving the dispute.”

Wood Group previously took on Gateshead coatings company Pyeroy, which applied protective paint to the HMS Queen Elizabeth aircraft carrier.