Polish gas grid operator Gaz-System has awarded a €280m contract to oilfield service company Saipem to build a natural gas pipeline between Denmark and Poland in the Baltic Sea, as part of the $1.88bn Baltic Pipe Project.

The Baltic Pipe 900km natural gas pipeline project will supply gas from the Norwegian gas system in the North Sea to Poland, via Denmark. It is being jointly developed by Danish gas transmission operator Energinet and GAZ-System.

Under the contract, Saipem will construct approximately 275km of 36-in concrete-coated pipes between Denmark and Poland. This will be done in water depths of 4m to 57m, via the S-lay method.

Saipem to build two micro tunnels

The scope of the contract also includes the construction of two micro tunnels and civil works activities in Denmark and Poland. This includes pre- and post-lay trenching, as well as backfilling activities and rock dumping.

Saipem E&C Offshore Division COO Francesco Racheli said: “This new contract, assigned thanks to our solid track record in pipeline installation projects and arriving at a critical moment for the energy industry worldwide, will help ensure the continuity of European gas supply and reinforces Saipem’s presence in such a highly strategic area.”

Pipelaying is scheduled to commence in the summer of next year while the pipeline is slated for commissioning in October 2022.

Gaz-System president Tomasz Stępień said: “Signing this contract, together with the agreement for pipe supply already in place, is key for the implementation of the Baltic Pipe project.

“At present, we already have binding agreements with all the main contractors and suppliers necessary to start construction of the gas pipeline to connect the Danish and Polish shores.”