Nord Stream AG has announced that it will enter into a letter of intent with EUPEC PipeCoatings S.A. by the end of February for the supply of concrete weight coating and logistics services for the Nord Stream pipeline. Bredero Shaw and Nord Stream were unable to agree on project pricing and certain contractual terms for this project.

Bredero Shaw understands that the pricing at which the pipe coating work will be awarded is below the level it requires to obtain a satisfactory financial return and ensure timely and adequate execution, given the scope and risks associated with meeting Nord Stream's requirement that the project be executed through new greenfield facilities in Germany and Finland.

ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The company operates through six divisions with over sixty manufacturing and service facilities located around the world.

Bredero Shaw, ShawCor's largest division, is the global leader in pipe coating solutions. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.