Kvaerner Lands Onshore NS2 Work

Nord Stream 2 (NS2) and Kvaerner have signed a contract for delivery of onshore facilities for the planned NS2 new Russian gas export pipeline, said Norway's Kvaerner December 21.

It added that the contract value is "somewhat above kroner 600mn" ($72mn) and involves construction of parts of the onshore facilities at the pipeline's starting point in the St Petersburg region.

Scope of Kvaerner'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, plus a 2-km onshore pipe, and  permanent buildings for operation. Design of the installations will be performed by NS2's engineering contractor. NS2 is owned by Gazprom but co-financed by five western gas firms.

The main contract for NS2 offshore pipelay was awarded to Allseas in April 2017, while a smaller pipelay contract was later awarded to Italy's Saipem, and other contracts were finalised this month. 

But pipelay work for the 55bn m³/yr project has yet to begin, despite an end-2019 target for completion of the first of NS2's two pipes, as the scheme faces the dual challenges of a possible Danish objection to its current route, and EU plans to extend jurisdiction to offshore gas import pipelines.