Australian Company Awarded $1.2mn Design Contract for Baltic Gas Project

Australia’s Subsea Engineering Associates (SEA) has been granted a contract worth $1.2mn to provide detailed design, procurement and construction management for Baltic Gas’ upstream project.

The scope of work comprises a major part of the front-end engineering and design (Feed) of subsea pipelines, including shore approach, HDD shore crossing, trenching, ramp-ups, risers and tie-ins, as well as system engineering including reservoir-to-gas plant flow assurance.

SEA's Perth office in Australia along with Polish subcontractors will be entrusted with the execution of the task.

SEA director Adam Czajko said that additional tender packages were likely this year. “Our focus this year is to lock-in the value generated during Feed by completing the design and going out to the market with tender packages for the main scopes," he said. "We expect significant interest from contractors and suppliers given the current state of the market. With tendered costs, the project should be in a strong position for final investment decision during the second half of 2016.”

The project is being carried out on behalf of Baltic Gas, a joint venture comprising Polish oil company Lotos Petrobaltic and CalEnergy Resources.

According to Baltic Gas, the project will aim to recover gas and condensate from the B4 and B6 fields in the Polish sector of the exclusive economic zone (EEZ) of the southern Baltic Sea. The raw gas – there could be up to 4.2bn m³ gas originally in place – will be transported through subsea pipelines to the mainland in Władysławowo. From there, it will be processed and delivered to regional customers.