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GAZ-SYSTEM Receives Pipes for Construction of Gas Pipelines (Poland)

August 28, 2013

GAZ-SYSTEM Receives Pipes for Construction of Gas Pipelines

On 23 August 2013, the last batch of 700 mm pipes was delivered to the construction site of the Rembelszczyzna – Gustorzyn pipeline. This means that the framework agreement of 26 January 2011 concerning the supply of approximately 890 km (184,000 tonnes) of insulated steel pipes to construct gas pipelines at sections: Świnoujście-Szczecin, Szczecin-Gdańsk, Szczecin-Lwówek, Gustorzyn-Odolanów, and Rembelszczyzna-Gustorzyn was completed.

To carry out its strategic projects, GAZ-SYSTEM S.A. applied a different practice than in the case of its earlier investments. It consisted in much bigger involvement of the very investor. GAZ-SYSTEM S.A. organised pipe and fitting tenders on its own and then signed framework agreements concerning the delivery of materials necessary to construct strategic gas pipelines with contractors.

Contractors selected under the public tender:

  1. Consortium of FERRUM S.A., STEELTUBES Sp. z o.o., UNISET Rury Stalowe-Steel Pipes Janusz Gaczyński, U.S. STEEL KOSICE s.r.o. (Slovakia);
  2. Consortium of IZOSTAL S.A., IMPEXRUR S.A.; ArcelorMittal Tubular Products Ostrava a.s. (the Czech Republic);
  3. Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (Turkey)

delivered 889 535 meters of DN 700 pipes of L485MB steel and DN 800 mm pipes of L555MB steel during two years on the basis of 17 separate fragmental agreements.

GAZ-SYSTEM S.A. executed those agreements case by case upon the acceptance of the best pipe offer. The total net value of all agreements is around PLN 835 million.

Investor pipe deliveries were received at production places and storage yards prepared by Contractors carrying out building works by inspectors of Bureau Veritas Polska Sp. z o.o. adequately trained employees of GAZ-SYSTEM S.A.

The investor delivery formula enabled in particular to:

  • define uniform top quality technical standards of GAZ-SYSTEM S.A. with regard to steel pipes and their external and internal insulation that guarantee safe gas pipeline operation;
  • use the effect of scale with regard to the purchase of pipes and obtain competitive pipe prices under subsequent partial orders;
  • accelerate projects: the contractor carrying out building works received pipes from the investor just after signing its agreement.

GAZ-SYSTEM S.A. taking over the finance of investor deliveries has also significantly improved the financial standing of contractors carrying out particular building works since they did not bear risks connected with the pipe and fitting buying prices.

The investor delivery method is an essential element of infrastructural projects carried out by GAZ-SYSTEM S.A. The company implemented such a new organisation of its investment process to manage its projects better, earn additional savings resulting from the large scale of purchase transactions, and reduce risks substantially.

To implement the new investment method consisting in investor deliveries, great work consumption and the involvement of a professional team were also necessary.

In its future strategic investments the company plans to apply the same scheme of conduct consisting in the separation of a contractor agreement from a pipe and fitting delivery agreement.
Till the end of 2014, GAZ-SYSTEM S.A. will complete the construction of 1000 km of new high pressure gas transmission pipelines of over PLN 8 billion.

Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company for the Polish economy, responsible for natural-gas transmission and management of the backbone of gas pipelines across the country. GAZ-SYSTEM S.A. will build more than 1,000 km of new gas pipelines by 2014. The most important of them will be situated in north-western and central Poland. The development of the gas transmission network may be an important element of the North – South Gas Corridor connecting the LNG terminal in Świnoujście to the planned LNG terminal in Croatia through the transmission infrastructure of Central European countries. Investments completed by GAZ-SYSTEM S.A. and virtual reverse flow services on the Yamal pipeline enabled to improve the power security of Poland significantly by increasing technical capacities to import more from a direction other than the East up to 43% of import (by 2011: 9%).

[mappress]
LNG World News Staff, August 28, 2013; Image: GAZ-SYSTEM