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98/99.03 - Financing Small Scale Investments for Regional Oil and Gas Infrastructure in Ukraine, Belarus and Moldova

Title of Project: "Financing Small Scale Investments for Regional Oil and Gas Infrastructure in Ukraine, Belarus and Moldova"

Project Number: 98/99.03

Reference Number: SCR-E/111357/C/SV/WW-Relaunch

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	Moldovagaz JSC Address: 38, Albisoara St., 277005, Chisinau Moldova Tel: + 37322 578004 Fax: + 37322 240014

Total budget of project:

Consultancy Services: 1.30 MEURO
Equipment Supply Contracts: 6.20 MEURO
Validation and Certification Activities: 0.40 MEURO

Equipment suppliers:

Belgian Company "Instromet" (Calibration rig for gas meters, piston prover, basic verification system and analytical laboratory);
Holland Company "Tek Know" (pressure and temperature instruments);
National Netherlands Metrological Institute (NMi) - responsible for Certification and Validation.

Sector of activities: Natural gas

Start date of project: January 2002

End date of project: March 2005

Project objectives:

Long term objectives:

Enhancing the security of the gas supply and transparency of gas trade within the region and to European markets
Facilitating the introduction of modern EU technologies in the gas transit sector

Objectives:

Creation of an international certified Regional Metrological Centre, which will provide state of the art calibration services for the gas transfer within the region and provides also the possibility to offer calibration services to other countries. The availability of the Metrological Centre will improve measuring techniques applicable in gas transit compatible with internationally recognised standards.

Project brief description of activities/approaches:

Background:

One of the objectives of the INOGATE Programme is to increase the transparency of gas trade within the region and to the European markets. For this purpose accurate gas flow measurements, acceptance of applied measuring techniques are essential. The previous INOGATE projects have revealed the importance of accurate and reliable gas flow measurements, especially for cross-border metering. Several cross border metering stations have been installed or upgraded with support of INOGATE (i.e. Grebenyky and Kaushany). A metrological centre will provide the necessary calibration - and other technical support services to these and other metering stations and is therefore a logical next step in the INOGATE Program.

Ukraine, Belarus and Moldova have agreed to create a Regional Metrological Centre and are jointly involved in establishing the facilities, which will be installed, and the design and implementation of these facilities. The three beneficiary countries also agreed to jointly operate the Regional Metrological Centre in the framework of the INOGATE Umbrella Agreement, for which a protocol will be signed.

Intended results/encountered limitations:

The following facilities were planned to be installed at the Regional Centre for Metrology of Natural Gas:

Test rig for calibration and verification of industrial meters of natural gas;
Basic verification system to support the traceably of gas meters;
Pressure Laboratory - for testing and verification of Pressure instruments;
Temperature Laboratory- for testing and verification of Temperature instruments;
Gas Analysis Laboratory - for testing and verification of Calibration Standards and analysis of gas samples, including density and humidity meters.

Foreseen activities:

Business Plan
A protocol to the Umbrella Agreement to define the legal status of the Regional Centre
Training program
Contract Award Supply Contracts - February 2003
Contract Award Validation and Certification Consultant - August 2003
Detailed Design - February - November 2003
Delivery Equipment - November 2003 - June 2004
Installation, Commissioning - June - November 2004
Validation and Certification Activities - November 2004 - February 2004
Start-up Operations - November 2004
International Certification - March 2004

Expected date of launching Metrological Centre: March 2005

Conclusions and summaries:

Achievements of the project to date:

Completion of a basic design package for the facilities to be installed at the Metrological Centre;
Preparation of the tender documents for the supply, installation and commissioning of these facilities;
Preparation of the tender documents for selecting a Consultant for certification and validation services;
Execution of the tenders;
The beneficiary has approved the Factory Acceptance Tests of the equipment;
The equipment for the pressure- and temperature facilities is at site;

Remaining activities

Shipment of the equipment for the Gas Meter Calibration Rig and the Analytical Laboratory;
Finalisation of the local construction activities;
Installation of the equipment for the laboratories and calibration rig;
Validation and Certification activities by NMi.

Future points of interest

Inauguration of the facilities with first meter calibration;
Training of local staff;
Issue of International Certification to the Centre by NMI

The Project meets the planned objectives and gained the officially expressed appreciation of all the beneficiaries. All activities were performed in close co-operation with the specialists from the three beneficiaries (Naftogaz of Ukraine, Moldovagas and Beltransgas). After its completion the international certified Regional Metrological Centre will provide state-of- the-art calibration services for the gas transfer within the region and will offer calibration services to other countries.