Offshore staff
FREDERICIA, Denmark – Construction of the Danish part of the onshore/offshore Baltic Pipe project looks set to rise to Eur 1.1 billion ($1.27 billion), according to Danish utility Energinet.
This is mainly due to the partial suspension of works until a new environmental permit has been processed by the Danish Environmental Agency.
Another factor is design changes to the tie-in from the Europipe II gas pipeline in the North Sea to the Nybro terminal, and high demand for construction contractors.
Torben Brabo, director of International Relations at Energinet, added: “The temporary halt to construction has meant a lot of extra claims from the contractors who were already working the onshore pipeline at the time…
“At the same time, we are procuring in a market of large-scale construction which is in demand at the moment, rising commodity prices, and of course the COVID-19 pandemic – all things that have had an impact on the budget…
“Energinet is engaged in ongoing negotiations with contractors regarding revised time schedules for construction and additional cost generated by the delay.” Despite the current issues Baltic Pipe should deliver part of the agreed capacity on the start-up date of Oct. 1, 2022 by using parts of the existing transmission system until Jan. 1, 2023.
At that point all parts of the project should be operational and delivering the full capacity of 10 bcm.
10/06/2021
