TAP issues EPC tender invitation for onshore pipeline sections

Trans Adriatic Pipeline AG (TAP) has issued an invitation to tender (ITT) on engineering, procurement, and construction contract, which may be split into further contracts depending on the offering bids, for its onshore portion. The ITT follows the prequalification process for onshore pipeline construction companies launched earlier this year (OGJ Online, May 12, 2014). Scope includes EPC of about 760 km of 48-in. OD onshore pipeline in Greece and Albania. Companies being invited to tender are international pipeline construction organizations, including companies from TAP’s host countries.

TAP plans to award the onshore pipeline EPC contract in third-quarter 2015 and begin construction in 2016 with work split into five lots, three in Greece and two in Albania. TAP’s highest elevation will be 1,800 m in Albania and the pipeline will cross many roads and rivers.

TAP says the contract for the construction of the onshore section of the pipeline is the largest it is planning to award. The next ITT will cover EPC for compressor stations in Greece and Albania, procurement of compressor units for the compressor stations, and procurement of large diameter ball valves. TAP plans to issue these in this year’s fourth quarter.

The pipeline will transport gas from Shah Deniz II field in Azerbaijan to Europe. The 870 km long pipeline will connect with Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece, Albania, and the Adriatic Sea, and make landfall in southern Italy.

Its routing allows gas supply to several southeastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, and Croatia. TAP’s landfall in Italy allows for further transport of Caspian gas to Germany, France, the UK, Switzerland, and Austria.

TAP targets first gas sales to Georgia and Turkey late in 2018, with first deliveries to Europe following roughly 1 year later.

TAP’s shareholders include BP PLC 20%, State Oil Co. of Azerbaijan Republic 20%, Statoil SA 20%, Fluxys 19%, Enagas 16%, and Axpo 5%. Statoil retained its share in TAP when selling its Shah Deniz stake to Petronas (OGJ Online, Oct. 13, 2014).

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