Italian offshore engineering and construction giant Saipem has been awarded contracts for the development of offshore facilities for the transportation and storage of CO2 of the East Coast Cluster in the United Kingdom.
The contracts were awarded for work on the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT) projects. The overall value of the two projects is around €650m ($684m), with a duration of 30 months.
Earlier this year, Saipem signed a letter of intent for the two projects. The first deal was awarded by the NEP’s entity called Net Zero North Sea Storage Limited, a joint venture between operator BP and its partners Equinor and Total Energies.
The second project has been awarded by Net Zero Teesside Power Limited, a joint venture between BP and Equinor.
The award follows the completion of the regulatory clearances and positive final investment decisions taken by the clients and the UK government.
Saipem’s scope of work encompasses the engineering, procurement, construction, and installation of 143 km of 28” offshore pipeline with associated landfalls and onshore outlet facilities for the NEP project, and the EPCI of the water outfall for the NZT project.
The offshore installation of the pipeline will be performed by the vessel Castorone while the nearshore operations will be done by the shallow water pipelay Castoro 10.
When completed, the projects will contribute to the realization of the first zero-emission industrial hub in England’s northeast and to the achievement of the UK’s Net Zero targets with the transportation and storage of around 4m tonnes of CO2 per year from 2028.
