Saipem has received contracts to develop offshore facilities for two major projects related to the transportation and storage of CO₂ in the UK.
On 15 March, Saipem initially announced a letter of intent concerning the projects, which have now reached the final award stage.
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The first project, Northern Endurance Partnership (NEP), was awarded by Net Zero North Sea Storage, a joint venture comprising bp, Equinor and Total Energies.
The second project, Net Zero Teesside Power (NZT), was awarded by Net Zero Teesside Power, a joint venture between bp and Equinor.
The projects are integral to the East Coast Cluster, an initiative aimed at creating the UK’s first zero-emission industrial hub in the north-east of England.
The combined value of the projects is approximately €650m ($683m), with an expected duration of 30 months.
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By GlobalDataSaipem’s responsibilities cover the EPCI of a 143km, 28in diameter offshore pipeline, with associated landfalls and onshore outlet facilities for NEP and the EPCI of the water outfall for NZT.
The offshore pipeline installation will be carried out by Saipem’s flagship vessel, the Castorone, while the nearshore operations will utilise the company’s shallow-water pipelay vessel, the Castoro 10.
The award of the contracts follows the successful completion of regulatory clearances and positive final investment decisions by the clients and the UK Government.
These projects are expected to contribute to the UK’s net-zero targets by enabling the transportation and storage of around four million tonnes of CO₂ annually from 2028.
In November 2024, Saipem, in partnership with PT Meindo Elang Indah, secured a $1.2bn offshore EPCI contract for the Tangguh CCUS [carbon capture, utilisation and storage] compression project in Papua Barat, Indonesia, operated by BP Berau.
Saipem’s share of the contract is approximately $1bn.
