GS Engineering & Construction signs MOU with AusNet to expand energy infrastructure push

GS Engineering & Construction is accelerating its push into Australia's energy infrastructure market, building on the track record it has established through major infrastructure projects in the country.

The company announced Thursday that it signed a memorandum of understanding with AusNet, the largest energy grid operator in the state of Victoria, on Wednesday (local time) to jointly identify business opportunities in the energy and infrastructure sectors.

GS Engineering & Construction entered the Australian construction market in 2021 when it won the contract for the Melbourne North East Link road project, valued at approximately 10.1 trillion won ($7.62 billion). It followed that up in 2024 by securing the Suburban Rail Loop East tunnel project in Victoria, worth about 1.6 trillion won. The company has since delivered both projects on track, and in July it completed tunnel boring machine excavation on the North East Link — a milestone that demonstrated its technical capabilities and local network.

The company now plans to leverage those achievements to expand into energy infrastructure in line with Australia's push toward a clean energy transition.

The two companies are already jointly bidding on the New England Renewable Energy Zone project, the largest clean energy zone development currently being pursued by the New South Wales state government. Following the MOU signing, they plan to actively explore forming joint ventures or consortiums to bid together on major transmission grid projects in New South Wales and Victoria.

The partnership will also look for collaboration opportunities in upgrading and expanding Victoria's existing transmission grid, building offshore wind-linked power networks, and developing new growth areas including data centers, hydrogen and water infrastructure.

Australia faces growing urgency to expand its transmission grid to ensure stable power supply to major demand centers as the share of renewable energy generation rises. GS Engineering & Construction plans to combine its accumulated local project expertise with its partnership with AusNet to establish an early foothold in the market.

"We have gained a deep understanding of the local market and honed our project execution capabilities through the successful delivery of large-scale transport infrastructure projects in Australia," a company official said. "Building on that foundation, we will strengthen our collaboration with AusNet and diversify our business portfolio into energy infrastructure, including transmission grids."

Meanwhile, GS Engineering & Construction Chief Executive Heo Yun-hong visited Australia in February to inspect infrastructure project sites under way there.