YAFA Poseidon

New effort for East Med agreement at Athens energy summit

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Greek gas utility DEPA and Italian energy giant Edison, collaborating on a plan to develop the East Med pipeline, envisioned to link the Greek, Cypriot and Israeli natural gas systems, are looking to take a crucial technical step ahead of construction.

Their YAFA Poseidon joint venture – spearheading the ambitious project, a 1,900-km pipeline stretch with an investment cost of between 6 and 7 billion euros – is gearing up for the launch of FEED (Front-End Engineering Design), environmental and detailed underwater research studies.

The European Commission has approved 34.5 million euros from the EU’s Connecting Europe Facility (CEF), a funding instrument, for these studies. The CEF amount will cover half the cost of the aforementioned preliminary studies, which will push the plan ahead to a mature stage.

The pipeline project is planned to carry southeast Mediterranean natural gas, primarily deposits from Cyprus’ recently discovered “Aphrodite” gas field and the Israeli-controlled block “Leviathan”, along a route stretching from Israel to Europe.

An agreement between Greece, Cyprus, Israel and Italy, where the pipeline is planned to conclude, is still needed.

East Med plans have been at a standstill ever since the current Italian government announced it was stalling the project.

According to sources, the Greek, Cypriot and Israeli energy ministers will seek to restart procedures and also send out a message of encouragement to the Italian government when they meet at an Athens energy summit tomorrow. US Assistant Secretary Francis Fannon will also participate.

East Med, still at a theoretical stage, promises geostrategic might for Greece, Cyprus and Israel, as well as the USA, on southeast Mediterranean energy matters, especially against Turkey’s opposition to hydrocarbon exploration within Cyprus’ Exclusive Economic Zone (EEZ).

The pipeline plan also promises to break Russia’s dominance of gas supply to the EU.

 

 

IGB tenders, moving fast, aim for winning bidders by May

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Procedures leading to pipeline procurement and construction contracts through a tender concerning the Greek-Bulgarian IGB gas grid interconnector are progressing rapidly, the aim of the project’s officials being to announce the winning bidders by May and give the go-ahead for work to commence in June.

The project’s tenders are being staged amid a period of heightened geopolitical interest and activity in the Balkans, which has spurred hopes of the IGB’s completion and launch within the first half of 2020.

Greek energy minister Giorgos Stathakis and his Bulgarian counterpart Temenuzhka Petkova are expected to acknowledge the swift progress being made at a meeting in Sofia next Monday. They may even announce an even swifter schedule for the project’s completion.

ICGB, the IGB project’s consortium, is a joint venture involving YAFA Poseidon – a Greek gas utility DEPA half-owned subsidiary – and the state-controlled Bulgarian Energy Holding (BEH).

Two of five candidates submitted bids just days ago to the second phase of a tender concerning the design, procurement and construction of the gas pipeline, a 182-km stretch budgeted at 145 million euros.

Greece’s J&P Avax and a rival consortium comprising Italy’s Bonatti and two Bulgarian firms, DZZD (IGB-2018), were the two bidding formations. Their technical proposals will now be assessed and offers unveiled in the effort to declare a winning bidder next month.

A pipeline supply tender budgeted at 60 million euros has also reached an advanced stage. Greece’s Corinth Pipeworks has entered this procedure and is up against a Turkish-Bulgarian consortium.

A preceding third tender for the role of project manager, to monitor the project on behalf of shareholders, has already produced a winning bidder, a consortium named TIBEI, whose 5.57 million-euro offer secured this contract.

TIBEI is comprised of Belgium’s Tractebel Engineering SA, Italy’s Tractebel Engineering SRL, Austria-based INTBER GMBH, as well as two Bulgarian firms, Ipsilon Consult OOD and Engineering EAD.

 

 

Offers soon for IGB gas pipeline project tenders, nearing completion

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Three tenders offering contracts for Greek-Bulgarian IGB gas grid interconnector’s project manager, pipeline procurement and construction are approaching completion.

Offers for the tender to appoint a project manager, to monitor development on behalf of shareholders, are expected this month.

Greece is well represented in the tender concerning the construction of the IGB pipeline, planned to cover a 182-km stretch and budgeted at 145 million euros. A total of five consortiums with three Greek firms on board have advanced to this tender’s second round.

Germany’s Max Streicher has teamed up with Greece’s Terna; China Petroleum Pipeline Engineering has joined forces with Aktor; and J&P Avax is the third local qualifier. Their bids are expected next week.

ICGB, the IGB project’s consortium, a joint venture involving YAFA Poseidon – a Greek gas utility DEPA half-owned subsidiary – and the state-controlled Bulgarian Energy Holding (BEH), plans to have appraised these offers within a month before announcing a preferred bidder at the end of April.

The IGB is planned to be linked with the TAP route, offering Bulgaria and the wider southeast European region access to Caspian gas as well as LNG.