Saipem has been awarded a contract by Gaz-System SA for the transportation and installation of a natural gas pipeline between Denmark and Poland in the Baltic Sea. The contract, signed by its controlled subsidiary in U.K. Saipem Ltd., is worth approximately 280 million euro (US$350 million).

The Baltic Pipe Project is a strategic infrastructure project developed by a joint venture between Gaz-System SA and Energinet.dk and is co-financed by the EU to create a new inter-European gas corridor that will supply gas directly from Norway to the markets in Poland, Denmark and neighboring countries.

Specifically, the contract comprises the construction of approximately 275 km by 36-inch concrete-coated pipeline between Denmark and Poland in a water depth between 4 m and 57 m to be carried out by Saipem S-lay vessels. Moreover, the contract includes microtunneling and civil works activities in Denmark and Poland, extensive rockdumping as well as pre and post-lay trenching and backfilling activities. Works under the contract will commence immediately.

“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 a such a highly strategic area. We look forward at swiftly and successfully delivering this important project,” Francesco Racheli, COO E&C offshore division, said.