The countries, which are involved in the project, are Ukraine, Belarus and Moldova. The gas infrastructures of the above countries played and still play a strategic role in transporting substantial gas volumes from the main exporting countries (Russian Federation and Central Asia) towards the importing gas markets of Western and Central Europe.

Since the break-up of Soviet Union the above countries have been facing very serious problems.

At the time of former Soviet Union the gas transmission infrastructures of Belarus, Moldova and Ukraine were operated in an integrated way, being part of a centralised gas system. At present the above gas networks are split between the three nations, each managed by a independent local operating company.

The relationships between these local-operating companies are now regulated by contracts: gas supply and transit contracts.

Coming from an integrated system without national borders, the gas transportation network, presently, is not in the best position to be operated nationally due, sometimes, to the lack of facilities normally necessary where national borders exists (i.e. metering facilities).

On the other hand all the countries involved in the project are gas importers. Due to the economic crisis which followed the former Soviet Union break up, all the countries involved in the project are facing problems of not payment from the gas final users. This caused increasing financial imbalances and a lot of external gas related debts has been accrued.

The transit fees, that could be a substantial source of revenues for almost all the countries involved, are normally paid with gas in a sort of barter system.

The lack of financial resources is causing, also, difficulties to financially support the maintenance and repair works on the pipelines and associated facilities, bringing the system to a gradual deterioration.

Participating Countries

The countries participating in this project are Belarus, Moldova and Ukraine.

Project Objectives

The goal of the above project is to audit the state of the existing gas infrastructures and, after a careful assessment of data and information collected, provide an investment programme aimed at a modernisation and/or rehabilitation of the audited network in order to meet the future gas requirements.

The objectives of the project can be summarised as follows :

Long term objectives

• Promoting the regional integration of gas transmission systems of Belarus, Moldova and Ukraine;

• Facilitating gas transport both within the region and towards the export market countries of Western Europe through investments into rehabilitation, modernisation and expansion of gas transmission facilities in Belarus, Moldova and Ukraine;

• Facilitating the process of mobilising financial resources necessary for the interventions on the gas transport systems.

Short term objective

• Auditing the existing gas transmission infrastructure;

• Assessing its value to a gas pipeline system operator;

• Identifying the measures to be taken and the investments to be realised to ensure that the audited infrastructure will be able to operate safely and within acceptable environmental and economic conditions.

Method of Working

The project activities will be performed according to the following phases:

Phase 1

• Analysis of all available studies on rehabilitation of gas transmission network in Belarus, Moldova and Ukraine;

• Selection of the gas facilities to be audited;

• Physical audit of the selected pipeline sections, compressor stations, metering stations and associated facilities;

• Assessment of the data and information collected during the physical audit and assessment of existing operational and maintenance practices;

• Hydraulic modelling of the existing pipeline system;

• Identification of additions and/or modifications in order to ensure efficiency of the gas transport system.

Phase 2

• Diagnosis of physical conditions of gas transmission system and associated facilities;

• Drawing up of a renovation and modernisation plan for the above facilities;

• Evaluation of the average gas transmission cost related to the audited facilities (CAPEX and OPEX estimation);

• Assessment of the existing quality control system and preparation of a standard quality plan according to the modern Western practices.

Phase 3

• Screening, evaluating and ranking of all potential activities to be performed in order to put the audited gas infrastructure in the conditions to meet future gas supplies;

• Preparation of an investment programme to be discussed with the TACIS Authorities and potential investors.

Planned Output

Output for a local gas operating company of each country involved

• Providing an investment programme for rehabilitation, modernisation and expansion of the audited gas transmission network;

• Preparation of a basic engineering study for metering stations;

• Preparation of a basic engineering study for dispatching centres;

• Preparation of a pre-feasibility study for intelligent pig inspections on selected pipeline sections;

• Providing a network simulation software for calculation of the following parameters:

• input/output pressures

• starting flows

• flows at sampling points

• flows at border crossings

• fuel gas consumption

• Providing a computer drafting tool (CAD) for basic design of gas transmission facilities and schematic diagrams of the above facilities;

• Training of the local personnel on the following:

• use of the computer drafting tool

• use of hydraulic simulation tool

• cathodic protection, wrapping and corrosion fault finding

• pigging

• operations;

• Providing a personal computer, software packages, printer.