Local companies have submitted the lowest prices for the construction of the initial stage of the Turkish portion of a natural gas pipeline planned from Iran. The project forms part of an $18,000 million, 23-year gas supply agreement reached in August 1996 (MEED 17:1:97).

Bidders for the 300-kilometre, 46-inch-diameter pipeline between Dogubeyazit on the Iranian border and Erzurum in the east could choose between credit- financed and non-credit options. The low bidder for the credit-financed option is Attila Dogan with a price of $132.9 million, and for the non- credit alternative is Fernas with STFA Enerkom at $117.6 million.

On a credit-financed basis, the bids from local companies and ventures, some with foreign partners, to state pipeline and gas agency Botas were:

Attila Dogan – $132.9 million

Oztas with Hazinedaroglu – $140 million

Emek with France’s SAE International and Sofregaz – $140 million

Metis – $148.5 million

Tekfen with Italy’s Saipem – $161 million

Enka with France’s Spie Capag – $174.4 million

On a non-credit basis, the bids were:

Fernas with STFA Enerkom – $117.6 million

Guris with Iran Technical Engineering – $124 million

Attila Dogan – $124.2 million

Intes with Vinsan – $129.3 million

Yuksel – $129.5 million

Ethem Hikmet Aruthan – $129.8 million

Oztas with Hazinedaroglu – $135 million

Epsilon with Age – $136.9 million

Emek with SAE International and Sofregaz – $137.1 million

Getas with Mapit and Germany’s Preussag – $145.5 million

Metis – 148.5 million

Tekfen with Saipem – $149.6 million

ATA with DAIP – $180 million

Enka with Spie Capag – $209.7 million

Tender evaluation will take about three months, according to Botas sources. Construction will take about 20 months for completion in early 1999, the sources add.

Iran will finance and build its 270-kilometre section from Tabriz to the Turkish border. The first gas imports are due to start at a rate of 3,000 million cubic metres a year (mcm/y), rising to 10,000 mcm/y in 2005. The total amount of gas to be supplied over the 23-year period is 190,000 mcm/y.