ShawCor Ltd. said Monday that its Bredero Shaw division does not now expect to participate in the pipe coating for the Nord Stream pipeline project.
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
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.