Azerbaijan, Baku, Jan. 28 / Trend A.Badalova/
Nabucco Gas Pipeline International (NIC) signed a contract with Italian contractor Saipem to perform Front End Engineering & Design (FEED) services for the Nabucco West project, NIC reported on Monday.
According to the report, Saipem has been selected as the appropriate provider of these services based on a competitive tender process launched in September 2012.
The contract includes all FEED activities for the 48 inch diameter, 1326 km pipeline system. This includes strategic analysis of data and information to conduct appropriate risk assessments and allocation of resources across the pipeline to ensure the continued successful development of the project.
"This re-feed for the NABUCCO West project is being conducted following the selection of the project as the Central European route by the Shah Deniz consortium in June last year," NIC reported. This work will build upon existing engineering work already completed for the 56 inch diameter, 3900 km Nabucco classic route. Nabucco West is a short-cut version of Nabucco project, which envisages construction of the pipeline from the Turkish-Bulgarian border to Austria.
The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ. Gas to be produced within the second phase of Azerbaijani Shah Deniz gas condensate field development is considered as the main source for the project.
Earlier Nabucco shareholders and Shah Deniz partners signed Cooperation Agreement and Equity Option and Funding Agreement.
Equity Option and Funding Agreement, in particular, envisages joint funding of the development costs of the Nabucco West up to the pipeline selection decision for Shah Deniz' European export route, as well as the granting to Potential Investors of equity options of 50 percent to participate as shareholders in NIC following a positive pipeline selection decision by the Shah Deniz Consortium in favour of Nabucco West.
Do you have any feedback? Contact our journalist at firstname.lastname@example.org