Ukraine’s Ukrnafta to Invest in 16 Gas Engine Power Plants

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Ukrnafta, Ukraine’s largest oil company, has unveiled plans to acquire 16 gas generator sets, totaling 76.4 megawatts (MW) in capacity. This significant procurement is expected to cost UAH 1.576 billion (approximately $38.3 million), excluding VAT, with tenders scheduled for August 26-27.

The gas generator sets will vary in capacity from 1 MW to 14 MW. Specifically, Ukrnafta intends to purchase:

  • Two units with capacities of 1-1.3 MW
  • One unit with a capacity of 1.6-2.1 MW
  • Two units with capacities of 1.95-2.5 MW
  • Three units with capacities of 2.4-3.1 MW
  • One unit with a capacity of 2.94-3.7 MW
  • Three units with capacities of 3.9-4.5 MW
  • One unit with a capacity of 4.4-5.2 MW
  • One unit with a capacity of 5.85-6.8 MW
  • Two units with capacities of 12-14.1 MW

All generators must meet a minimum electrical efficiency rating of 42%. Ukrnafta emphasized that the selected generators must feature advanced automatic control and remote monitoring systems.

The winning bidder will be responsible for installation, supervision, commissioning, testing, start-up, and training personnel.

In addition to this procurement, Ukrnafta recently issued a tender in July for three gas co-generation plants with a total capacity of up to 80 MW. These plants are also expected to be installed and operational by December 31, 2025.

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

On August 12, state-owned Oschadbank signed a five-year loan agreement worth UAH 28.7 million (about $695,116) at an interest rate of 9% per annum to finance the installation of a gas-piston power plant. This loan will fund the purchase of a 2.5 MW generation system, marking the first instance of a Ukrainian bank financing gas-piston power plants nationwide.

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