Nawara Development Project

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The Nawara Development Project is a landmark natural gas initiative located in Tunisia, representing a significant step in the country's energy development strategy. The project, situated in the south of Tunisia, focuses on extracting and processing natural gas from the Nawara gas field, a key resource in the country's hydrocarbon sector.

The Nawara Development Project is a flagship natural gas initiative in Tunisia, aimed at tapping into the country’s hydrocarbon resources. Its history is marked by milestones in exploration, discovery, and infrastructure development:

• 2003: The Jenein Sud exploration permit was granted to Tunisia's state-owned ETAP and Austria's OMV Group, with OMV assuming the exploration costs and risks.
• 2006: The Nawara gas and condensate field was discovered, marking a major achievement for Tunisia's hydrocarbon sector.
• 2008-2010: Drilling campaigns resulted in eight additional successful wells, further confirming the field's potential.
• 2010: The Ministry of Industry officially granted the concession for the Nawara field, equally shared between ETAP and OMV.
• 2008: The Nawara Development Project was launched, encompassing a Central Processing Facility (CPF) at the well site and a 370 km pipeline from Nawara to a Gas Treatment Plant in Gabès.
• 2012-2013: After negotiations with the Tunisian government over a proposed pipeline route change to Tataouine, the original plan was reinstated to ensure project viability.
• 2014: The government committed to local development initiatives, including a spur pipeline to Tataouine, a gas treatment plant, and an LPG bottling unit to boost regional economic activity.

• The Nawara Development Project was conceived with the following objectives:
  • Enhancing Domestic Energy Supply: To increase Tunisia’s natural gas production and reduce dependency on imported energy.
  • Economic Growth: To stimulate industrial and economic activity in the region, particularly in southern Tunisia.
  • Job Creation: To generate employment opportunities through construction, operation, and ancillary industries.
  • Infrastructure Development: To build a sustainable and efficient energy infrastructure network, including extraction, processing, and transportation.

• Energy Security: Strengthening Tunisia’s energy independence by supplying a significant portion of its natural gas demand.
• Economic Development: Boosting regional economies through infrastructure and job creation.
• Environmental Impact: Supporting cleaner energy by prioritizing natural gas, a less polluting fossil fuel, over alternatives like coal or oil.
• Local Empowerment: Addressing local gas needs through dedicated infrastructure, such as the spur pipeline to Tataouine.

• Central Processing Facility (CPF): Located at the field site, it processes raw gas before transportation.
• Pipeline Network: A 370 km pipeline connects the CPF to the Gas Treatment Plant in Gabès.
• Gas Treatment Plant: Located in Gabès, the plant processes natural gas into market-ready products, including LPG.
• Local Development Additions: Infrastructure such as the Tataouine spur pipeline and LPG bottling units.

The Nawara Development Project progressed through various phases, with significant milestones achieved in financing, contracting, and construction. Below is a detailed status update:

1. Final Investment Decision:
   • OMV made the final investment decision for the Nawara Development Project in March 2014.
2. European Investment Bank Loan:
   • The European Investment Bank (EIB) agreed to co-finance the project with a loan of EUR 150 million to ETAP, signed in March 2014.

1. International Tender Process:
   • The recommendation for international tenders for the EPCC contracts for three work packages—Central Processing Facility (CPF), Pipeline, and Gas Treatment Plant (GTP)—was completed in 2014.
2. Contract Signing and Engineering Work:
   • EPCC contracts were signed on August 18, 2014.
   • Contractors began engineering work, with feed endorsement certificates provided.

1. Right of Way (ROW):
   • State Land (200 km): Approval received for pipeline construction from Nawara to Kamour through Tataouine, with an estimated construction timeline of 10 months (completion expected by end of 2015).
   • Private Land in Gabès (28 km): 18 km cleared.
   • Collective Land: Negotiations with local stakeholders were ongoing as of the status update.
2. Line Pipe Production:
   • The procurement contract for line pipe fabrication was awarded to Corinth Pipeworks.
   • Fabrication was 100% complete, and 35% of the pipes were delivered to Tunisia.
3. Pipeline Valves:
   • The procurement contract for line valves was awarded to British LFF.

1. Agreement and Compensation:
   • ETAP and local authorities in Gabès reached an agreement to compensate local farmers for land acquisition.
2. Site Preparation:
   • Fencing and site grading were completed 100%.
   • The GTP site was handed over to the EPCC contractor.

1. Technical Evaluation:
   • The technical evaluation of tenders was finalized.
2. Commercial Evaluation:
   • The commercial evaluation of tenders was ongoing.

In March 2014, key commercial agreements were signed with:

• STEG (Société Tunisienne de l'Électricité et du Gaz): For natural gas distribution.
• STIR (Société Tunisienne des Industries de Raffinage): For handling refined products.
• TRAPSA: For pipeline transportation services.

The Nawara Development Project's meticulous planning and structured execution reflect its significance as a cornerstone of Tunisia’s energy development efforts. These steps demonstrate the project's commitment to meeting technical, environmental, and economic objectives.

• Tunisian Ministry of Industry reports
• ETAP and OMV project documentation
• News coverage on Tunisia's energy sector

• ETAP Official Website
• OMV Group Nawara Project Page
• Tunisia Ministry of Industry, Energy, and Mines

• OMV Tunisia Nawara project official page (French)
• OMV to invest €500 million in Nawara gas field