Engineering and construction firm Forge Group's subsidiary CTEC has been awarded a $105 million contract to develop a power station in Western Australia.

Worley Parsons awarded the contract to develop BHP Billiton's Yarnima Power Station, 3km north-west of Newman in Western Australia's Pilbara region.

Forge Group managing director David Simpson said it was the second major project to be awarded to CTEC since it was acquired by Forge Group in January this year.

In September, CTEC was awarded a $280 million contract to deliver a CCGT (combined cycle gas turbine) power station at Cape Lambert in the Pilbara.

It is also the third major contract award since November 2011 when CTEC was awarded a $150 million contract for the Open Cycle Gas Turbine Power Station project in the East Pilbara.

Forge said the project work has begun, with delivery expected during the first half of calendar year 2014.

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