Eupec will undertake the concrete weight coating for both the Nord Stream pipelines at new coating plants to be constructed in Mukran in Germany and Kotka in Finland. The agreement with Eupec also includes interim trans-shipment, handling and storage of pipes across the Baltic region.
The total budget of the coating and logistics contract is about E650 million. Around E100 million will be invested in establishing the required coating and logistics infrastructure around the Baltic Sea. The remaining budget covers raw materials, trans-shipment and labor costs.
To ensure that the pipes are properly coated by the time pipelaying starts, Nord Stream said that it is making preparatory investments in the facilities and infrastructure needed for the coating, handling and storage of pipes in several locations.
The first pipes for constructing the pipeline are due to arrive in Mukran in April 2008 and in Kotka in June 2008. Three-quarters are to be delivered by German manufacturer Europipe and one quarter by OMK of Russia.
Pipe coating is scheduled to start in Mukran in January 2009 and in Kotka in March 2009. All pipes for the first line of the Nord Stream pipeline are planned to be coated by December 2009.
