Daily Newsletter

13 August 2024

Daily Newsletter

13 August 2024

Ukraine to purchase 16 gas engine power plants 

Ukraine’s largest oil company, Ukrnafta, has announced 16 tenders to purchase gas generator sets totalling 76.4MW in capacity.

Smruthi Nadig August 13 2024

Ukrnafta, Ukraine's largest oil producer, has announced 16 tenders seeking to buy gas generator sets totalling 76.4MW in capacity, according to local media reports. 

The total cost of acquisitions, including delivery by 31 December 2025, is expected to be UAH 1.576bn before value-added tax (approximately $38.3m). with tenders scheduled for 26-27 August. 

According to Interfax, a Russian news agency, Ukrnafta intends to purchase gensets ranging in capacity from 1MW up to 14MW. Specifically, it plans to procure the following generators: two with capacities of 1-1.3MW, one with a capacity of 1.6-2.1MW, two with capacities of 1.95-2.5MW, three with capacities of 2.4-3.1MW, one with a capacity of 2.94-3.7MW, three with capacities of 3.9-4.5MW, one with a capacity of 4.4-5.2MW, one with a capacity of 5.85-6.8 MW, and two with capacities of 12-14.1 MW. Additionally, the generators must have an electrical efficiency rating of at least 42%. 

The company described the machines as “cutting-edge, with automatic control and remote monitoring systems”. 

Ukrnafta stated that the winning bidder will be responsible for installation, supervision, commissioning, testing, start-up, and personnel training. 

The company also announced a tender in July to purchase three gas co-generation plants. with a total capacity of up to 80MW.The installation and commissioning of the plants are set to be completed by 31 December 2025. 

Ukrnafta also operates a network of filling stations across Ukraine.State-owned oil and gas company Naftogaz owns 50%+1 of Ukrnafta. In 2022, the Supreme Commander-in-Chief transferred private owners' corporate rights share to the state and is now managed by the Ministry of Defence of Ukraine. 

On Monday (12 August), the state-owned bank Oschadbank entered into a five-year loan agreement for UAH 28.7m (around $695,116) at 9% per annum to install a gas-piston power plant.  

The concessional loan will be used to purchase a 2.5MW generation system, as announced by the government. This marks the first time a Ukrainian bank has provided capital for installing gas-piston power plants nationwide. 

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