Ukrtransgaz announces the tender in the amount of UAH 2.5 bln for the Yagotyn compressor station reconstruction

25 June 2018, Kyiv – Ukrtransgaz announced the tender with expected value of UAH 2.5 bln for the purchase of works on the project “Yagotyn Compressor Station Reconstruction”. Completion of the procurement procedure and signing of the agreement with the winner in the bidding planned by October, 01, 2018.

With the tender Ukrtransgaz introduces in its practice the best international standards, namely procurement procedure in accordance with the EPC form of contract. The contract foresees the winner of the tender must do the research works, make delivery of the equipment, do all construction works, and together with the customer put facility into the operation.  The EPC contract do not obligate holder to commit to the one particular subcontractor on the tender stage that leads to a significant expansion of competition and more attractive conditions for an execution of the project.

Importantly, the tender conditions contains not only price criteria. One of the main additional evaluation criteria is the high efficiency of the equipment in the tender proposals of the participants. Particularly, it includes the level of fuel gas consumption on the reconstructed station Yagotyn. Inclusion the parameter in the final decision about the winner of the tender let the company to choose the solution that has the lowest Total Cost of Ownership (TCO), which will reduce Ukrtransgaz's financial expenses in the future.

"Both Ukrainian and foreign companies are welcomed to participate in the tender. We are searching for a reliable partner for the construction of a modern high-performance facility that has an essential meaning for ensuring country's energy security. We are convinced that the introduction of the best word procurement practices will contribute to the development of healthy market and transition to a new high quality technical solution that Ukrtransgaz will use in its future activities,” said Sergey Yeremin, Procurement Director at Ukrtransgaz.

By the 2021, Ukrtransgaz plan to build a new compressor service department with four gas-pumping units powered by gas turbine engines with a capacity of 14-16 MW each and the necessary engineering infrastructure. The use of modern units with high ecological and efficiency performance indicators will allow the transportation of natural gas in the amount of about 50 million cubic meters per day, or 16.5 billion cubic meters per year.

Ukrtransgaz as the GTS operator of Ukraine has defined Yagotyn as one of the priority objects for the reconstruction. The compressor station ensures the security of transportation of domestic natural gas from the Shebelinkagasvidobuvannya and Poltavagasvidobuvannya gas fields. Yagotyn also take part in the process of pumping gas into the UGS (underground gas storage). The station compresses gas for its further transportation by the main gas pipelines "Shebelinka - Dykanka - Kyev", "Shebelinka - Poltava - Kyiv", "Efremivka - Dykanka - Kyiv". Even in the case of implementing the "zero transit" scenario, this facility will be involved in the transportation of natural gas to consumers in Ukraine.