8 May 2018 15:41

Ukrtransgaz to invest $270 mln in compressor stations, reckons with potential end of gas transit

KYIV. May 8 (Interfax) - PJSC Ukrtransgaz, the operator of Ukraine's gas transmission system (GTS), has drawn up an extensive modernization plan for 2018-2027, the company said in a press release.

"Ukrtransgaz and [parent company] Naftogaz Ukrainy continue to modernize the Ukrainian GTS. The 10-year modernization plan was drawn up with the goal of bringing production capacities - compressor station operation and gas transport - up to European standards of reliability, safety and environmental protection," the company said.

The plan stipulates reconstruction of four compressor stations: Yagotin, Dikanka, Romny and CS4 Bilche-Volitsa (a booster compressor station in an underground storage facility).

"These facilities have been identified as priority, optimal for capital investment, based on analysis of the technical condition and capacity utilization (taking into account the threatened cessation of Russian gas transit through Ukraine). The investment planned for allocation to reconstruction of these compressor stations in 2018-2020 tops 7 billion hryvni (about $267 million at the current exchange rate)," it said.

The company is also working on the issue of eliminating existing GTS bottlenecks in order to support development of domestic gas production.

Ukratransgaz plans to begin procurement procedures in Q2 2018 for the project to rebuild the Yagotin compressor station in Kyiv region, in which foreign and Ukrainian companies may participate.

"Naftogaz plans to rebuild a significant number of new facilities, creating a great need for services and equipment, all of which will be obtained in open tenders. We expect that major manufacturers present in Ukraine with the know-how to make the equipment we need, in whole or in part, independently or in cooperation with international partners, will take part in these tenders," Naftogaz chief Andriy Kobolev is quoted in the press release as saying.

The 10-year GTS modernization plan is subject to approval by the National Commission for State Regulation of Energy and Public Utilities.

The official exchange rate on May 8 was 26.29 hryvni/$1.