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IGB reports delay compared to originally agreed deadline for completion

Oil&Gas Materials 5 February 2021 10:52 (UTC +04:00)
IGB reports delay compared to originally agreed deadline for completion

BAKU, Azerbaijan, Feb.5

By Leman Zeynalova – Trend:

Year to date February 2021 there is a reported delay in the implementation of the Interconnector Greece-Bulgaria (IGB) compared to the originally agreed deadline for completion of the site, which is mainly due to the state of emergency in Bulgaria, reflecting the spread of COVID-19 pandemic as of 13th of March 2020 coinciding with the active phase of the construction works, Trend reports with reference to ICGB AD, a project company.

“Initially, the IGB Project is targeted with an implementation deadline - the end of 2020, but due to extended procedures for appealing the decisions for selection of a contractor under the Contract for production and supply of pipes, as well as due to the need to provide the total funding, which was accomplished only with the signing of contracts on 10.10.2019, the construction was awarded in October 2019 with an execution deadline 28.04.2021.

The Global spread of COVID-19 pandemic was an unexpected factor that hampered the development of the project in 2020 and continues to make it difficult to maintain the steady pace of work set out in the project’s draft plan. In view of the international nature of IGB and the involvement of staff and experts from different countries, the restrictions on international travelling and the mandatory quarantine period to be strictly observed, have further adverse impact on the working processes. The life and health of people involved in the project are of our primary concern and care and their safety is the major priority of all parties involved.

More precisely, the border-crossing restrictions imposed in Bulgaria and Greece, the mandatory quarantine when relocating staff between the countries, the restrictions of machinery and equipment movement as well as the banned travelling of staff from other EU countries (Belgium, Italy, Latvia) from where there are suppliers and partners, considerably reduced the speed of implementation of major activities.

Currently, the contractor for the engineering, procurement and construction contract - the Greek company J&P AVAX S.A, has submitted a request to extend the project implementation period with an indicative deadline of the end of 2021. The request is based on the global spread of the COVID-19 pandemic. The request from the contractor is yet to be discussed by the shareholders of the project company. Meanwhile, with the support of the national governments of the two countries, all parties continue to work on ways to optimize the activities so that the pipeline is successfully implemented as soon as possible, while holding the health and safety of all employees on site as a top priority,” the company said.

The gas pipeline is 182m long and has transmission capacity of 3bcm/year with the option to come to 5bcm/year, after an upgrade through a compressor station. The total investment cost is estimated to be 240mln w/o VAT of which approximately €220 mln are capital expenses and €20 mln development costs.

The project is perceived as crucial for Bulgaria and the region due to its strategic importance for providing diversification of sources and routes of natural gas supply to Bulgaria.

The Interconnector track is divided into 7 main lots, the shortest being of 9.55km length and the longest of 71.9 km. The 106 km of the track on Bulgarian territory shall be built by automatic welding and the rest 45km by hand welding.

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Follow the author on Twitter: @Lyaman_Zeyn

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