ICGB, project company for the Bulgaria-Greece gas inter-connector pipeline, said on May 14 that it picked Greek company J&P Avax to build the 183km Bulgarian section of the proposed pipeline.
J&P Avax offered a price of 144.85 million euro, just under the 145 million euro ceiling set by ICGB, while the bid from a Bulgarian-Italian consortium, the other shortlisted candidate, was 229.7 million euro, well above that threshold, ICGB said in a statement.
The Greek company will have 18 months to complete the pipeline between Stara Zagora in central Bulgaria and Komotini in north-eastern Greece. The initial capacity of the two-directional pipeline will be three billion cubic metres of gas a year.
The pipeline is due to become operational at the end of 2020, when Bulgaria is due to begin deliveries of Azeri gas from the Shah Deniz 2 development.
ICGB earlier declined a request from a third potential bidder to extend the deadline for offers, citing the pressing deadline, and said that it expected construction work to begin in June.
At the weekend, ICGB also picked a pipe supplier for the inter-connector, Greek Corinth Pipeworks Industry S.A., which alone met the technical specifications of the tender, while another bidder withdrew and the third submitted a non-compliant offer. The pipe contract is worth 58.23 million euro.