Nabucco launches pre-qualification process

Nabucco has launched the pre qualification process.

Nabucco Gas Pipeline International has launched the pre-qualification process as a 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 and the deadline for companies to participate in the prequalification is 17th May.

“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 most eligible companies and is the basis for a successful procurement process,” 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 worldwide basis. Interest by potential suppliers has been extensive from the outset. After the prequalification process is completed, Nabucco intends to launch the respective tender.

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“The prequalification for long lead items is a substantial step towards starting construction at the end of 2011”, said Mitschek.

The long lead items required in this package include line pipes, valves and bends, which need to be ordered in advance to meet the construction schedule. The materials specification has been prepared by engineering companies in accordance with internationally recognised standards, and the technical prequalification process of the respective procurement is to be performed by an independent third party.

On another note, the selection of the route corridor has been recently completed for the first phase of the project and the right of way and permission process for the environmental and social assessment and construction permit in the Nabucco countries is currently in progress.

Nabucco project in brief 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 EUR 7.9 billion. Construction will start 2011, first gas will flow 2014.