Gas supply Project

Project Title

Reconstruction and Modernisation of Abovyan Underground Gas Storage

Location

Ptghni village, Kotayk Marz, Armenia

Sector

Natural gas sector

Project objectives

Toensurereliable and secure supply of naturalgastothecountrysconsumers, aswellastoincreasethe energy security levelof the Republic of Armenia

Project brief description

The investment project envisages the following activities to be performed:

1.      Survey, complete and commission on storage service the recently finished new cavity;

2.      Conduct workovers including comprehensive subsurface surveys on all boreholes and cavities.

3.      Solution mining of new cavities as permitted by brine disposal capacity.

4.      Construct and commission of new automated compressor units;

5.       Implement repairs and replacements to the brine pumps and the gas metering facilities.

Project will be performed by

A turn-key solution is envisaged for the project. EPC contract will be concluded with the competitively selected general contractor/equipment supplier. During the detailed appraisal stage procurement procedure will be reviewed and the best route to proceed further to comply with the IFIs procurement principles and rules will be chosen.  

ArmRusgasprom CJSC and/or ArmRusgasproms daughter companies could participate in the tender to be organized for selection of projects general contractor.

Project Total Time

Schedule

Start of activities

01.06.2004

Start of works at site

01.12.2004

End of works

01.06.2007

Start of commercial operation

01.06.2007

Current Project Status

Negotiations with potential donors, including International Financing Institutions (IFI)

Project Budget

23,0 mln. EURO divided as follows:

                           21,85 EURO of credit;

                           1.15 EURO of co-financing by ArmRusgasprom 

Cash Flow

mln. Euro

2003

2004

2005

2006

2007

2008

2009

2010

0.0

-9.1

-8.57

3.42

10.26

6.00

5.05

4.92