Kvaerner bags Nord Stream 2 deal

The Swiss operating company Nord Stream 2 AG and Kvaerner have signed a contract for delivery of onshore facilities for a new Russian gas export pipeline.

The contract value is above NOK 600 million ($71.6M), Kvaerner informed on Thursday.

The two 1,200-km Nord Stream 2 pipelines will mostly follow the route of the existing Nord Stream pipeline in the Baltic Sea – from the coast of Russia to Greifswald on Germany’s northern coast. The project will have the capacity to transport up to 55 billion cubic meters of gas per year from Russia to Europe, connecting with pipelines within the European Union for onwards transmission.

The new Nord Stream 2 pipeline will provide gas supplies to the European market. Kvaerner’s subsidiary Kvaerner LLC is contract partner for the work related to the construction of parts of the onshore facilities at the pipeline’s export landfall facilities in the St. Petersburg region.

The work will include procurement and project management for civil, mechanical and piping works in addition to installation of some onshore pipelines and service buildings at the facilities.

The scope of Kvaerner LLC’s contract consists mainly of civil works and foundations, procurement and installation of piping and valves for the pipe cleaning pig launch and receiver unit. The scope also includes installation of the approximately two kilometer long adjacent pipeline onshore, as well as construction of permanent buildings for operation of the gas export plant. Design of the installations will be performed by Nord Stream 2 AG’s engineering contractor.

“We are excited to be selected for this important new project. We have extensive experience from both delivery of onshore plants and from solid track record on execution of projects in Russia,” says Hans Petter Mølmen, Executive Vice President for Concrete & New Solutions in Kvaerner.

Kvaerner LLC’s execution of the Russian export landfall facilities will take place in cooperation with local subcontractors and international suppliers.

When it comes to the project’s progress, Gazprom which manages the project construction through its subsidiary Nord Stream 2 AG, recently revealed that the construction of the Nord Stream 2 pipeline was on course to be completed in 2019.

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