Saipem has signed a Letter of Intent for the development of CO2 offshore transportation and storage facilities in the UK.

The Letter of Intent is related to two major projects, the Northern Endurance Partnership (NEP), which is jointly operated by bp, Equinor, as well as TotalEnergies, and Net Zero Teesside Power (NZT Power), which is a joint venture between Equinor and bp.

Saipem’s scope of work for the NEP project includes Engineering, Procurement, Construction, and Installation of a 28″ offshore pipeline that spans approximately 145 kilometers, along with associated landfalls and onshore outlet facilities. For the NZTP project, Saipem will be responsible for the Engineering, Procurement, Construction, and Installation of the water outfall.

The offshore pipeline operations will be carried out by Saipem’s flagship vessel, Castorone, while the nearshore operations will be handled by the shallow water pipelay vessel, Castoro 10. Once completed, these projects will serve the East Coast Cluster in Teesside by transporting and storing around 4 million tons of CO2 per year, starting in 2027.

The final award to Saipem is subject to the receipt of regulatory clearances and Final Investment Decisions (FID) by the projects and the UK government, which are expected to be received by September 2024 or earlier.

Alessandro Puliti, Chief Executive Officer of Saipem, expressed his pride in being selected as the contractor for these crucial projects. He also reiterated Saipem’s commitment to providing the best competencies and utilizing its flagship vessel, Castorone, to support the NEP and NZTP partnerships. Saipem is determined to contribute to the realization of the first zero-carbon industrial hub in the North-East of England and help the UK achieve its Net Zero targets.

“We are extremely proud to be the selected contractor for the offshore CO2 pipelines and associated facilities of NEP and NZT contracts. Saipem is fully committed to providing the best competencies and its flagship vessel Castorone to support NEP and NZTP partnerships and contribute to the realization of the first zero-carbon industrial hub in the North-East of England and the achievement of the UK’s Net Zero targets,” said Alessandro Puliti, Chief Executive Officer of Saipem.