Punj Lloyd JV secures $409m contract for Tanap Gas Pipeline project in Turkey

India-based engineering and construction company Punj Lloyd in a joint venture with Limak has secured a contract worth Rs27.8bn ($409m) from Tanap Dogalgaz Iletim to construct the 459km pipeline for Tanap Gas Pipeline project in Turkey.

Punj Lloyd’s share in the contract is worth Rs13.9bn ($204m).

The Trans Anatolian Natural Gas Pipeline Project (TANAP) is estimated to cost $10bn to $11bn and will be constructed to transport natural gas from the South Caucasus Pipeline Company (SCPC) in Georgia and terminating into the Trans-Adriatic Pipeline (TAP) in Greece.

As part of the contract, Punj Lloyd will be responsible for the second phase of construction from the new Eskisehir Compressor station to the tie-in point of TAP.

The 459km natural gas pipeline is of 48in diameter.

Scope of work will also include ten block valve stations, pigging facility and tie-ins with metering stations.

Punj Lloyd pipelines and tankage president and CEO Atul Jain said: "This is the second project for Punj Lloyd- Limak JV in Turkey."

Beginning from compressor station 5A at Eskisehir in Turkey, the proposed section of the pipeline will travel through the vicinity of major cities such as Eskisehir, Bursa, Balikesir, Canakkale and Edirne.

The project aims to bring natural gas produced from Azerbaijan’s Shah Deniz-2 gas field, and other areas of the Caspian Sea, primarily to Turkey and also on to Europe.

The initial capacity of Tanap is expected to reach 16 billion cubic metres of gas per year and could potentially be increased to 31 billion cubic metres in the future.

Around six billion cubic metres gas will be delivered to Turkey and is expected to begin in 2018, while the rest will be supplied to Europe.