Nabucco Starts Procuring Pipeline Construction Supplies

Business » ENERGY | April 23, 2010, Friday // 16:11
Bulgaria: Nabucco Starts Procuring Pipeline Construction Supplies

Nabucco Gas Pipeline International has launched a prequalification process as starting phase for the procurement of long lead items needed for the construction of the gas transit pipeline.

The value of the entire package is around EUR 3.5 B, and the deadline for companies to participate in the prequalification is May 17, 2010.

“Long lead items - like pipes and valves - are the cornerstone for pipeline construction and account for a considerable part of the overall investment costs. The prequalification process will identify the qualified companies and is the basis for a successful procurement,” Nabucco Managing Director Reinhard Mitschek stated.

The prequalification process will provide the Nabucco consortium with the opportunity to thoroughly assess the supplier market on a world wide basis, announced the international consortium which is in charge of building the pipe.

The Nabucco company has also added that the interest of potential suppliers was intensive from the first day ongoing. After the prequalification is completed Nabucco intends to launch the respective tender.

“The prequalification for long lead items is a substantial step to start with construction at the end of 2011”, said Mitschek.

The requested long lead items including the line pipes, valves and bends need to be ordered in advance in order to match the construction schedule. The specification of the materials has been prepared in accordance with the international recognized standards by engineering companies and the technical prequalification process of the respective procurement to be preformed by the independent third party, said the Nabucco Consortium.

It further made it clear that the selection of the route corridor has been recently completed for the first phase of the project. According to the company announcement, the right of way and permitting process for the environmental and social assessment and construction permit in the Nabucco countries is currently in progress.

The Nabucco gas pipeline will run for over 3 300 km from Turkey via Bulgaria, Romania and Hungary to Vienna, close to the Baumgarten gas hub.

Currently, the pipeline shareholders include OMV Gas&Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS and RWE. The planned capacity for the final development stage is 31 billion cubic meter. The total capital investments based on the project assessments of summer 2008 was EUR 7.9 B. Construction will start 2011, first gas will flow 2014, the consortium said.

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Tags: Nabucco, Nabucco Gas Pipeline International, gas, natural gas, gas transit pipeline, pipeline, procurement procedure

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