The Azerbaijan State News Agency

NABUCCO PAVES WAY FOR CONSTRUCTION

Baku, April 24 (AZERTAC). Nabucco Gas Pipeline International launched this week the prequalification process as starting phase for the procurement of long lead items needed for the pipeline construction. The value of the entire package is around Euro 3.5 Billion. The deadline for Companies to participate in the prequalification is Mai 17th.

“Long lead items - like pipes and valves - are the cornerstone for pipeline construction and account for a considerable part of the overall investment costs. The prequalification process will identify the qualified companies and is the basis for a successful procurement,” Nabucco Managing Director Reinhard Mitschek stated.

The prequalification process will provide the Nabucco consortium with the opportunity to thoroughly assess the supplier market on a world wide basis. The interest of potential sup-pliers was intensive from the first day ongoing. After the prequalification is completed Nabucco intends to launch the respective tender. “The prequalification for long lead items is a substantial step to start with construction at the end of 2011”, said Mitschek.

The requested long lead items in this package including the line pipes, valves and bends needs to be ordered in advance in order to match the construction schedule. The specification of the materials has been prepared in accordance with the international recognized standards by engineering companies and the technical prequalification process of the procurement to be preformed by the independent third party. On the other hand the selection of the rout corridor has been recently completed for the first phase of the project. The right of way and permitting process for the environmental and social assessment and construction permit in the Nabucco countries is currently in progress.

Nabucco will make a significant contribution to natural gas supply security for Turkey, South-Eastern Europe and Central - and Western-Europe. The pipeline will provide access to new sources of gas for European customers and encourage competition within the international gas markets. The Nabucco gas pipeline will run for over 3,300 km from Turkey via Bulgaria, Romania and Hungary to Vienna, close to the Baumgarten gas hub. Currently, the pipeline shareholders include OMV Gas&Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS and RWE. The planned capacity for the final development stage is 31 billion cubic meter. The total capital investments based on the project assessments of summer 2008 was euro 7.9 billion. Construction will start 2011, first gas will flow 2014.

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