Ukrtransgaz announces 10-years modernization plan and intends to reconstruct four compressor stations during nearest three years

May 8, 2018, Kyiv – Ukrtransgaz and Naftogaz Group continue to upgrade Ukrainian gas transportation system (GTS). The 10-year modernization plan of Ukrainian GTS in 2018-2027 was developed to bring production capacities including compressor stations and gas transportation system in line with European reliability, safety, and environmental standards.

As of today, Urtransgaz continues the cooperation with National Regulatory Commission of Ukraine on Energy and Utilities on finalizing and approving of the 10-years plan of the gas transmission system and underground gas storages development. It is expected the Regulator will approve the plan as soon as possible.

In particular, modernization plan includes reconstruction of four compressor stations: Yogotyn, Dykanka, Romny, and Bylche-Volytsa. The last one is located on the underground gas storage in Lviv region. These objects are the priority and optimal for the investment based on the analysis of the current technical state and workload including the future threat of termination of the Russian gas transit through the territory of Ukraine. Narrow places of the Ukrainian GTS are also under additional consideration to support local gas production in Ukraine. Planned investments in compressor stations reconstruction during 2018-2020 are estimated at 7 billion UAH.

Such projects have a significant potential to stimulate the development of related industries through the participation of local manufactures of equipment and construction companies. Shortly Ukrtransgaz are going to begin international tenders through the Prozorro public procurement system, in which both foreign and Ukrainian companies will be able to participate in a transparent and competitive environment.

“Naftogaz plans to reconstruct a significant number of new facilities, and we have a substantial need both in services and equipment. The total scope of work will be the subject of open competition for subcontractors. And we expect that all large companies represented in Ukraine, either partially or completely, alone or in co-operation with international partners, will take part in these competitions”, said Andriy Kobolev, CEO of Naftogaz of Ukraine.

First procurement procedures on the reconstruction of the Yagotyn compressor station are scheduled in the 2nd quarter of 2018. The second set of the procurement procedures planned for the coming restoration of the compressor station in Bylche-Volytsa.

“Ukraine has sufficient scientific potential for the production of the equipment needed for our industry including gas turbines, medium and small turbines to pump gas through the gas trunklines, compressor equipment, isolation valves and other turbine facilities. Together with our European colleagues Ferrostaal Industrieanlagen GmbH we are planning to visit major Ukrainian producers of oil and gas equipment to start negotiations to transfer technical documentation and adopt new technologies locally. All our projects and all tenders will be conducted as transparently as possible. After all, procurement is a service function, the main task of which is to ensure the reliable and uninterrupted operation of the Ukrainian GTS”, said Andriy Khomenko, Acting President, Ukrtransgaz.