Saipem Signs Contract for Nord Stream Pipeline

Saipem and Nord Stream AG have signed the contract for laying the Nord Stream gas pipeline, worth more than 1 billion Euro (US $1.55 billion).

Nord Stream is a twin natural gas pipeline that will link Vyborg, Russia and Greifswald, Germany across the Baltic Sea. Each line is approximately 1,220 kilometers long, with a transport capacity of some 27.5 bcm per annum. Overall capacity of about 55 bcm a year will be reached when both the lines are operational.

Saipem will start the laying activities in the first months of 2010 by using two pipe laying vessels, in order to complete the laying of the first line in the first half of 2011. This is a prerequisite for first gas deliveries through the Nord Stream pipeline in 2011. The laying of the second line is scheduled in 2011 and 2012.

The present contract relates only to the sole pipelaying job, whereas negotiations with the client on shore approaches, tie-ins, rock dumping, testing and commissioning activities are still under way.

Nord Stream AG is an international joint venture which partners are: Gazprom (51%), BASF/Wintershall (20%), E.ON Ruhrgas (20%) and N.V. Nederlandse Gasunie (9%).