Saudi Arabia-led group may win bid for $1.6bn gas pipeline in Bulgaria

Arkad Engineering and its JV with ABB have reportedly offered to construct the 474km pipeline by the end of 2020 for $1.2bn

A Saudi Arabian contractor may build a Bulgarian gas pipeline [representational image].
A Saudi Arabian contractor may build a Bulgarian gas pipeline [representational image].

Saudi Arabia's Arkad Engineering and Construction, alongside its Milan-based joint venture with Swiss-Swedish ABB, has offered the lowest bid to build a pipeline carrying Russian natural gas across Bulgaria, network operator Bulgartransgaz said, according to a Reuters report.

The Saudi-led group offered to construct the pipeline by the end of 2020 for $1.2bn (SAR4.5bn). Its alternative bid to build the pipeline in eight months stood at $1.4bn (SAR5.3bn), according to Bulgartransgaz data cited by Reuters.

According to the report, the Balkan-country will build the 474km long pipeline from its southern border near Turkey to its western border around Serbia. The project is aimed at securing a link to the Russia-backed TurkStream twin pipeline network.

Commenting on the three bids, Vladimir Malinov, chief executive officer of Bulgartransgaz, reportedly said the organisation would imminently make a decision, adding that the Saudi consortium's bid was close to its own cost estimates.

Bulgartransgaz plans to provide an advance payment of $280.8m to the winner and make installments for the remaining costs under a 10-year payment plan.

On 7 March, 2018, a Reuters report had stated that three groups including companies from Hungary, Italy, and Saudi Arabia had submitted bids for the $1.6bn pipeline. 

Most popular


Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the


CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020