# Nawara Development Project

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.

## History

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.

## Objectives

* 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.

## Benefits

* 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.

## Concept

* 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.

## Status

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

### Key Decisions and Financing

* Final Investment Decision:
** OMV made the final investment decision for the Nawara Development Project in March 2014.
* 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.

### Engineering, Procurement, Construction & Commissioning (EPCC) Contracts

* 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.
* Contract Signing and Engineering Work:
** EPCC contracts were signed on August 18, 2014.
** Contractors began engineering work, with feed endorsement certificates provided.

### Pipeline Construction (370 km)

* 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.
* 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.
* Pipeline Valves:
** The procurement contract for line valves was awarded to British LFF.

### Gas Treatment Plant (GTP) Land Acquisition

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

### Airstrip Development

* Technical Evaluation:
** The technical evaluation of tenders was finalized.
* Commercial Evaluation:
** The commercial evaluation of tenders was ongoing.

### Commercial Agreements

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.