Kalyon Insaat has been awarded a $546 million contract to construct a 188.46-mile (303.3 kms) gas pipeline in Romania.
The pipeline will transport 15 Bcm of natural gas from terminals in Turkey and Greece to Romania and the Caspian Sea region.
Known as the Tuzla-Podisor pipeline, it will connect the Neptune Deep block to the BRUA Pipeline, which links Austria, Bulgaria, Hungary, and Romania.
The project is considered crucial for Romania’s economic and social development, and it is fully supported by the Romanian Government and other public institutions.
It will facilitate the expected increase in natural gas consumption due to decarbonization policies and investments in the industrial and energy sectors.
As one of the European Commission’s Projects of Common Interest, the Tuzla-Podisor pipeline has secured $93 million (EUR 85 million) in funding from the European Bank for Reconstruction and Development (EBRD).
This funding reflects the pipeline’s significance in diversifying Europe’s gas sources and ensuring energy security.
The construction contract was awarded following capacity booking agreements signed between OMV-Petrom SA, Romgaz SA, and Transgaz.
The Tuzla-Podisor pipeline is Transgaz’s most significant gas infrastructure project after the BRUA and Ungheni-Chisinaugas pipelines.
It aligns with the European Union’s objectives and is part of an effort to access future major gas infrastructure projects, including the Trans-Adriatic Pipeline (TAP) and gas sources from Central European gas hubs and Black Sea deposits.
Transgaz, the Romanian state-owned company, expressed its commitment to the project, highlighting its strategic importance and contribution to the country’s natural gas transmission infrastructure.
Transgaz is involved in the Solidarity Ring initiative, a five-country supply network agreement between Azerbaijan and EU members Bulgaria, Hungary, Romania, and Slovakia.
The agreement aims to enhance gas distribution to the EU through existing infrastructure.
Azerbaijan plans to increase gas exports to Europe to 423.78 billion cubic feet (12 billion cubic meters) this year, as stated by Azerbaijan President Ilham Aliyev during the signing ceremony in Bulgaria.
Source: https://www.oilandgasmiddleeast.com/