Tender for KRG gas pipeline set for February

Published 28.12.2015 21:17
Updated 28.12.2015 21:18

The Tender for construction of the Şırnak Natural Gas Pipeline, which will integrate the natural gas of Northern Iraq into the Turkish national network and will be constructed between the provinces of Şırnak and Mardin, will be put to tender on Feb. 9 at 2:00 p.m. by Turkey's state-owned energy company, the Petroleum Pipeline Corporation (BOTAŞ), according to an announcement posted on BOTAŞ's official website. A high pressure natural gas pipeline measuring 185.1 kilometers long and 4 inches in diameter will be constructed, starting from a connection valve at the Serenli Pig Station, located on the 35th kilometer of the Mardin Natural Gas Pipeline.

The first batch of natural gas from the Kurdistan Regional Government (KRG) is expected to flow into Turkey within the next two or three years, and 20 billion cubic meters of it are expected to pour into the Turkish market - where it will then reach the European market - in early 2020, according to Tony Hayward, the chairman of Genel Energy, one of the leading energy companies in Iraqi Kurdistan.

Moreover, Hayward said that 150 billion cubic meters of gas has been found in Iraqi Kurdistan, adding that, in the first phase, the total gas reserves will be enough to satisfy Turkey's 50 billion-cubic-meter annual demand for gas, even though Iraqi Kurdistan will be able to export 20 billion cubic meters of gas to Turkey. Hayward noted that they expect to reach 5 trillion cubic meters of natural gas reserves in the region, enough to meet Turkey's demand for natural gas for the next 50 years.

Those who are willing to participate in the tender can purchase the tender documents from the BOTAŞ General Directorate, Engineering and Contracts Head of Department for TL 250 ($85.83). The bids can be submitted in person or by registered mail to the BOTAŞ General Directorate, Correspondence Department.

The most economically advantageous bid will only be determined on the basis of the price offered with the tender being open for all foreign and domestic firms.

Bids should cover the entirety of the project and consortiums will not be allowed to participate in the tender. One unit price contract will be concluded with the winner and bidders will be obliged to submit a bid bond equivalent to 3 percent of the price offered. Tender bids will be valid for 180 calendar days from the date of tender.

Site delivery will take place within 10 days of the signing of the contract and the completion period will be 720 calendar days.

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