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TAP tenders onshore pipeline construction contracts

15th October 2014

Trans Adriatic Pipeline AG (TAP) has issued the first major Invitation to Tender (ITT) for the construction of the onshore section of the pipeline

TAP tenders onshore pipeline construction contracts
TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe

This is an engineering, procurement and construction (EPC) contract, which may be split into further contracts, depending on the offering bids.

“The contract for the construction of the onshore section of the TAP pipeline is the largest that TAP is planning to award,” said Knut Steinar Kvindesland, procurement director at TAP.

“The selection of the bidders who have been invited to tender has followed a rigorous prequalification process. The bidders’ ability to meet TAP’s high standards on health, safety and environment and ability to demonstrate a zero harm policy have and will be key in selecting bidders.”

The ITT follows the pre-qualification process for onshore pipeline construction companies that was launched in May this year.

The scope for the onshore pipeline contracts include the engineering, procurement and construction of approximately 760 kilometres of the cross-country onshore pipeline - 1.2 metres in diameter - in Greece and Albania. Companies being invited to tender are international pipeline construction organisations, including companies from TAP’s host countries.

Construction of the Trans Adriatic Pipeline is planned to begin in 2016 and, currently, will be split into five lots (or sections) – three lots in Greece and two lots in Albania. TAP’s highest elevation will be 1,800 metres in Albania and the pipeline will, on its route, cross many roads and rivers.

TAP plans to award the contract for the onshore pipeline contract in the third quarter of 2015. The next Invitation to Tenders (ITT) that will be issued by TAP are the 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 ITTs in the fourth quarter of 2014.

TAP’s EPC contractors will also be responsible for further securing additional subcontractors to implement specific parts of the contract assignment. This could create additional employment and business opportunities, thereby contributing to economic prosperity in the countries that TAP will cross.

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe. The approximately 870-kilometre long pipeline will connect with the Trans-Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s routing can facilitate gas supply to several South Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and others. TAP’s landfall in Italy provides multiple opportunities for further transport of Caspian natural gas to some of the largest European markets such as Germany, France, the UK, Switzerland and Austria.

TAP will promote the economic development and job creation along the pipeline route; it will be a major source of foreign direct investment and it is not dependent on grants or subsidies. With first gas sales to Georgia and Turkey targeted for late 2018, first deliveries to Europe will follow approximately a year later.

TAP’s shareholding is comprised of BP (20 per cent), SOCAR (20 per cent), Statoil (20 per cent), Fluxys (19 per cent), Enagás (16 per cent) and Axpo (5 per cent).

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