Friday, March 16, 2018

ICGB pipe supply tender attracts ten bids - SEE NEWS

16 March 2018
Bulgarian Ministry of Energy

SOFIA (Bulgaria), March 16 (SeeNews) - Bulgaria's energy ministry said on Friday that a tender for the supply of pipes for the Gas Interconnector Greece-Bulgaria project has attracted ten offers.

Bids were filed by Jindaw SAW Ltd, JSC Zagorsk Pipe Plant, Welspun Corp. Ltd, Salzgitter Mannesmann International GmbH, Noksel Celik Boru Sanayii A.S., Umran Celik Boru Sanayii A.S., Erciyas Celik Boru Sanayi A.S., Toplivo-2, Korinth Pipeworks S.A., Pipe Industry S.A. and Public Joint Stock Company Chelyabinsk Pipe Plant, the energy ministry said in a statement.

This is the first of several key tenders, which will ensure the actual commencing of construction of the Gas Interconnector Greece-Bulgaria.

The tender for the construction of the interconnector will be launched in April, the ministry also said. In addition, tenders for supervision of construction works and for carrying out an archaeological study are due to be opened.

The IGB pipeline will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora.

The planned length of the pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station.

The gas link is estimated to cost 220 million euro. The project company has secured a sovereign guarantee of 110 million euro under the annual state budget act, which could ensure loan financing under preferable conditions.

The project is being implemented by the joint venture company ICGB, in which state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon hold equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.

($= 0.8519 euro)