Azernews.Az

By Aynur Jafarova

The Trans-Adriatic Pipeline (TAP) has entered the procurement stage.

In April 2014, TAP decided to re-launch its procurement process and initiated new pre-qualifications for its goods and services.

The procurement of goods and services for the construction of the pipeline will be carried out in a staged approach, depending on the project's progress and in line with the schedule set by the Shah Deniz 2 upstream development, TAP said.

"TAP's schedule is in full alignment with the upstream developments," TAP said.

Overall, TAP's procurement will carried out in a two-step process: the selection stage and the contract award stage, a source in TAP told Trend Agency.

During the selection stage, TAP will run the so-called 'pre-qualifications' aimed at identifying contractors with the required skills, capacity, experience and capabilities to deliver the goods and services TAP is seeking to procure.

TAP is proceeding with implementation of the project, which includes the preparation of tendering for steel pipes, offshore and onshore construction, and other associated services and items.

"Trans Adriatic Pipeline (TAP) plans to award large package contracts for onshore and offshore construction of the pipeline and other services and items", the source said.

The contracts will fall under one of three categories: Early Works (EW) Contracts, Company Provided Items (CPI) Contracts, and Engineering Procurement Construction (EPC) contracts, according to the source.

Subsequent contract notices to be issued by TAP in the CPI category will include the pre-qualification of companies supplying line pipes, casing pipes and bends; pre-qualification of companies, providing SCADA systems; pre-qualification of companies supplying fiber optic cable.

Forthcoming EPC contracts will include the pre-qualification of companies providing offshore pipeline construction services and construction services for a pipeline receiving terminal.

So far, TAP has announced five pre-qualifications. TAP has issued contract notices on construction of Albanian roads and bridges, onshore pipeline construction in Greece and Albania, construction of compressor stations in Greece and Albania, supply and installation of gas turbine compressors in Greece and Albania, and supply of large diameter valves since May.

The Shah Deniz field, one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proven to be a secure and reliable supplier of gas to Azerbaijan, Georgia, Turkey, and Europe.

The gas which will be produced at the second stage of Azerbaijan's Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.

The Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe in late June. Another pipeline which was vying for Azerbaijan's gas transportation to Europe was Nabucco West.

Azerbaijan agreed to sell over 10 billion cubic meters of natural gas a year from the second phase of its Shah Deniz development to nine companies in the European Union in September 2013.

The contracts were signed for 25 years between SOCAR and the European utilities, including Axpo Trading AG, Bulgargaz EAD, Depa, Gas Natural Fenosa, Hera Trading Srl, Shell Energy Europe, Enel SpA, E.ON SE, and GDF Suez SA.

The initial capacity of TAP will amount to 10 billion cubic meters per annum with the possibility of expanding to 20 billion cubic meters per annum. The TAP's construction project is planned to start in 2015.