Bonatti, Streicher Win Eugal Construction Bid

German pipeline operator Gascade, a subsidiary of German chemicals giant BASF and Russian gas exporter Gazprom, has awarded the construction of six lots of the Eugal gas pipeline to a joint venture between Italian engineers Bonatti and German Max Streicher, Bonatti said August 28.

The pipeline will carry gas from Nord Stream 2 (NS 2), the 55bn m³/yr pipeline connecting reserves in the Yamal region of Russian to central Europe, so awarding the contract shows that Gascade has confidence that NS 2 will be built, whatever the politics suggest.

The overall route of Eugal is 480 km and comprises two lines, one of 480 km and the second of 329 km, and will pass through Western Pomerania, Brandenburg and Saxony. Bonatti won the Saxony and the Brandenburg sections and last week Brandenburg gave approval to the construction of the line across its territory.

Eugal runs parallel to the Opal gas pipeline and aims to enhance the distribution of gas in the heart of the Europe, Bonatti said. It is estimated that the joint venture will start operations in the summer of 2018 after the necessary approvals have arrived; the delivery will be completed with the double line sections by the end of 2020.

The route of NS 2 has not yet been confirmed – it still needs approval from Denmark to follow the route of NS 1 across its territorial waters, and if this approval is not granted, the pipeline will have to go further to arrive at the same point on the northern German coast. Awarding the contract to the joint venture shows confidence the line will go ahead, although the US is keen to stop it in order to limit Russia's gas exports to Europe.