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97.03.03 - Priority Emergency Investments in Oil and Gas Infrastructures - Eastern Europe (Ukraine, Belarus and Moldova)

Title of Project: "Priority Emergency Investments in Oil and Gas Infrastructures - Eastern Europe (Ukraine, Belarus and Moldova)"

Reference Number: 97.03.03

Beneficiary Countries: Ukraine, Belarus and Moldova

Management contact details (Contractor and local contractors):

EC Contractor: Tebodin BV Address: P.O.Box 16029 2500 BA The Hague, Netherlands Tel: + 31 70 3480911 Fax: + 31 70 3480505 Contact person: Mr. A. van den Berg
Beneficiaries:
Naftogaz of Ukraine NJSC Address: 6, B.Khmelnitsky St., Kiev, Ukraine Tel: + 38044 2351044 Fax: + 38044 2283745	Beltransgaz SC Address: 9, Nekrasova St., Minsk 220040 Belarus Tel: + 37517 2312188 Fax: + 37517 2856336 Contact person: D. N. Anniuk	Moldovagaz JSC Address: 38, Albisoara St., 277005, Chisinau Moldova Tel: + 37322 578004 Fax: + 37322 240014 Contact person: N. M. Calugher

Total budget of project: 4 MEUR

Equipment suppliers: Belgian Company "Instromet"

Sector of activities: Natural gas

Start date of project: May 1999

End date of project: December 2001

Project objectives:

Long term objectives:

Promoting the regional integration of the oil and gas pipeline systems
Facilitating oil and gas transport both within the region and towards the export markets of Europe

Specific Project objectives:

Identification and selection of priority investments that meet predefined technical, operational and economical criteria
Setting up the technical and other conditions for those investments to be implemented efficiently on a pilot basis with the support of Tacis financing and the preparation of local counterparts, firms and experts
Monitoring the installation of the pilot investments optimising all components, which will enhance the standardisation of selected investments in terms of operational, environmental, maintainability, safety and health conditions
Training local firms in project identification, preparation, evaluation, supervision and more generally implementation techniques including the possibility of local assembly and manufacturing of project components and the establishing of joint ventures

Project brief description of activities/approaches:

Identifying and ranking potential projects
Performing design for the selected projects
Procurement of hardware
Management and supervision of the local contractors
Commissioning of new equipment
Training of local staff

During the selection phase among 9 projects two priority projects were identified to be executed:

Preparation of basic engineering designs for the metering stations at Grebenyky (Ukraine), Kaushany (Moldova) and Kobrin (Belarus);
Construction of cross-border metering stations at Grebenyky (on the Ukrainian-Moldovian border) and Kaushany (on the Moldovian-Ukrainian border).

The local installation and construction activities at Grebenyky commenced in autumn 1999 and were successfully executed in September/October 2001. Instromet installed the equipment at Grebenyky in September/October 2001. Training and a Site Acceptance Test (SAT) were held in November 2001. Arrangements were made to install the facilities in Kaushany, give the training and the SAT were held in the first half of 2002 upon completion by Moldovagaz of the required local construction activities. Due to severe budget limitations, Moldovagaz finally started local activities in May 2001. Project completion in spring 2004.

Intended results/encountered limitations:

Development of projects to propose
Elaboration of criteria and recommendations for project selection
Preparation of engineering study and project design reports for the gas metering stations Grebenyky (Ukraine), Kaushany (Moldova) and Kobryn (Belarus)
Procurement packages for the gas metering facilities at Grebenyky and Kaushany
Implementation plans to define the respective responsibilities and commitments of all Parties for the implementation of the selected projects
Engineering, procurement and construction of gas metering stations
Training workshops on project execution and gas metering

Expected date of metering station launching/ organisers:

For Grebenyky Gas Metering Station: September/October 2001.
For Kaushany Gas Metering Station: May/June 2002.

Conclusions and summaries:

The Project was successful completed. Grebenyky Gas Metering Station was launched in autumn 2001. Its official inauguration took place on 31 October 2001 with participation of the Ukrainian authorities and high-level European officials. Kaushany station was put into operation in July 2003. The metering stations Grebenyky and Kaushany measure the gas flow in the transit system from Russia to Romania, Bulgaria and Turkey using modern measuring and analyzing equipment:

Ultrasonic gas meters;
Automatic sampling and analysing systems;
Flow supervisory system including software for custody gas metering report generation.

Realization of two metering stations at the transit gas lines from Russia into the Balkans means that the project is a step forward in meeting the wider objectives of the INOGATE Programme. Because the two stations are of identical design, exchange of operating and maintenance experience is beneficial to both countries and will promote regional integration.