Leighton Contractors (ASX: LEI), a subsidiary of Leighton Holdings and one of Australia's leading contracting and project development groups, has been selected by the Power and Water Corporation in the Northern Territory to install additional generation capacity at Darwin's Channel Island Power Station.

Located on Darwin Harbour's Middle Arm, the project involves the installation of two off nominal dual fuel 45 to 55 Mega Watt gas turbine generators. Leighton Contractors' Industrial & Energy Division General Manager Mark Chilcote said being selected to supply for the largest power station in the Territory reinforces Leighton Contractors ability to successfully deliver power generation projects.

"Our track record in the successful completion of power generation developments is evident through our most recent projects, including Mt Stuart Power Station in Queensland, Newman Power Station in Western Australia and Quarantine Power Station in South Australia," he said.

"We are looking forward to working with the Power and Water Corporation to deliver this additional 90 Mega Watt generation capacity at Channel Island Power Station, to allow existing plant to be refurbished from next year and cater for growth in electricity demand on the Darwin - Katherine grid."

The scope of work consists of civil foundation and footing work, structural and drainage work, assembly of the main generation units, assembly of the balance of plant, all cabling and switchgear, telecommunications, instrumental control, support engineering, connection between the units and the switchyard, as well as surface restoration and finishing. The project will be fast tracked with commissioning due to commence in February 2011.