11 tenders submitted to construct the Estonian section of Balticconnector

In total, 11 tenders were submitted by six companies and consortiums of companies for the procurements to construct the Estonian-based sections of the Balticconnector Estonian-Finnish gas connection.

Three tenders were submitted for the construction of the new gas pipeline running from the area of Kiili to Paldiski and four tenders were submitted for the construction of compressor stations for both Paldiski and Puiatu. The companies are predominantly based outside of Estonia. The assessment of tenders will now begin.

According to Elering’s Chairman of the Board, Taavi Veskimägi, the company will presumably sign agreements with the winners of the procurements in the next few months and actual construction work will commence in the second half of the year. In cooperation with the Finnish partner, Baltic Connector OY, a procurement is under way to find the constructor for the offshore part of the gas connection.

On Thursday, the Estonian government will make a decision on granting a permit for the offshore construction of the connection and increasing Elering’s share capital by 40 million euros, which is necessary to ensure funding for Balticconnector as well as the relevant reinforcement works of the Estonian-Latvian gas connection.

Granting the permit for the construction is one of the important stages in the preparation of the construction of Balticconnector. Prior to building Balticconnector, an environmental impact assessment has been conducted, a permit for the special use of water has been granted and agreements of personal right of use have been signed with most of the landowners on the onshore route.

The Balticconnector gas connection is due to be completed by 2020, enabling the creation of a Baltic-Finnish unified gas market.