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TAP issues contract notice for construction of compressor stations in Greece and Albania

05 June 2014

Trans Adriatic Pipeline (TAP) is continuing its pre-qualification of potential suppliers for the construction of the 870km-long high pressure natural gas pipeline with its associated infrastructure across Greece, Albania, and Adriatic Sea with landfall in Southern Italy.

This week TAP has issued its third contract notice in the Official Journal of the EU – the EU Gazette: Link to the announcement for the construction of compressor stations in Greece and Albania. Two compressor stations will be necessary to transport 10 bcm of natural gas per year along the entire pipeline route from east to west.

The scope for this contract will include the Engineering, Procurement and Construction of one compressor station in Albania near Fier (with fiscal metering, and one flow metering station in Albania in Bilisht), and one compressor station in Greece near Kipoi (with fiscal metering).*

Companies interested in being pre-qualified for this contract need to request a pre-qualification questionnaire from TAP no later than 16.06.2014. This request can be sent to TAP via email at pqq.stations@tap-ag.com Only a selected number of pre-qualified companies will be invited to participate in the tendering stages of the TAP’s procurement process for the compressor stations construction.

Knut Steinar Kvindesland, Procurement Director at TAP, said: “The scope of work for this contract is rather complex - potential contractors must demonstrate very specific expertise in constructing natural gas compressor stations, as well as other multi-disciplinary energy infrastructure experience, including strong project management skills.”

TAP’s EPC contractors will be responsible for further securing of additional subcontractors to implement specific parts of the contract assignments. It is expected that this will create additional employment and economic opportunities in the region. Construction of the compressor stations is planned to start in 2016 and it will take approximately 2 years to complete.

The compressor stations will be built in accordance with the international industry standards on health and safety, located at a significant distance away from highly populated areas, causing minimum impact on the environment and local communities. TAP has developed a set of measures to mitigate any impacts as described in its Environmental and Social Impact Assessments (ESIA in Albania and ESIA in Greece).

The current pre-qualification is the third one, following contract notices on construction of Albanian roads and bridges and onshore pipeline construction services in Greece and Albania.

The next contract notices to be issued by TAP in the coming weeks will be the pre-qualification of companies supplying Turbo Compressors and Large Diameter Valves.

* The contract notices for two additional compressor stations in Greece and Albania (for the future pipeline capacity expansion to 20 bcm) will be announced at a later date.

ENDS

About the Trans Adriatic Pipeline (TAP)

TAP will transport natural gas from the giant Shah Deniz II field in Azerbaijan to Europe.  The approximately 870 km 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 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%), SOCAR (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).

About TAP’s procurement process

In April 2014, following a review of its strategy and schedule, TAP decided to re-launch its procurement process and new pre-qualifications for goods and services were initiated. The revised process aims to provide the maximum opportunity for national and international suppliers to participate in the project. TAP encourages all companies with relevant experience – including those that applied previously – to participate in the new rounds of pre-qualification.