GAS PIPELINE SYSTEM IN THE REPUBLIC OF MACEDONIA

C O N T E N T

I. GENERAL PART4

II. SPECIAL PART9

III. FEASIBILITY STUDY PRICE19

IV.ELABORATION OF PROJECT DOCUMENTATION in following phases19

V. technical inspection – revision19

VI. SPECIFICATION OF THE WORKS19

VII. proposal for minimum requirements to be met by the

study producer21

I.GENERAL PART

I.1.INTRODUCTION

Given the state of the existing constructed gas pipeline network, the development trends in the country, the energy conditions and other aspects, during the preparation of the Terms of Reference were taken into consideration the requirements specified in the tender documentation and the terms defined the Energy Law, Spatial Plan of the Republic of Macedonia and other available project documents among which the most important are the following:

-Feasibility study for gas pipeline system in the Republic of Macedonia, prepared by the following Consortium: Prostor DOO – Kumanovo, Energo Sistem doo Skopje, GASTECSofija, Petrol Ljubljana and EIHPZagreb in June 2010;

-Preliminary drawings with accompanying studies for the sections of the gas pipeline system prepared by the above mentioned consortium during 2010 that include:

-

1. SECTION KLECHOVCE - KAVADARCI (KM 0+000,00- KM 96+588,74) LOT 1

2. SECTION KAVADARCI – BITOLA (KM 0+000,00- KM 91+790,30) LOT 2

3. SECTION JUNCTION POINT STIP – HAMZALI (KM 0+000,00- KM 59+559,09) LOT 3

4. SECTION JUNCTION POINT HAMZALI – GEVGELIJA (KM 0+000,00- KM 50+393,21) LOT 4

5. SECTION SKOPJE – KICHEVO (КМ 0+000,00-КМ 110+698,08) LOT 5

6. SECTION KICHEVO – LOOP OHRID (КМ 0+000,00-КМ 48+342,36)

7. SECTION BITOLA – OHRID (КМ 0+000,00-КМ 63+494,40)

8. SECTION SVETI NIKOLE – VELES (27,19 КМ)

9. SECTION VRSAKOVO – KOCHANI – RAZLOVCI (65,93 КМ)

10. SECTION RAZLOVCI – BEROVO (17,58 КМ)

11. SECTION RAZLOVCI – DELCHEVO (14,65 КМ)

12. SECTION PRILEP – KRUSHEVO (26,02 КМ)

13. SECTION HAMZALI – NOVO SELO (24,74 КМ)

14. SECTION REK BITOLA – KREMENICA (16,98 КМ)

15. SECTION MATKA - GRACHANI (15,76 КМ)

16. SECTION KLECHOVCE - SOPOT (22,16 КМ)

17. SECTION STRUGA - KJAFASAN (26,72 КМ)

18. SECTION NEGOTINO – TEC NEGOTINO (5,54 КМ)

19. SECTION ARM FOR GEVGELIJA (6,57 КМ)

20. SECTION ARM FOR DEMIR KAPIJA (11,57 КМ)

21. SECTION ARM FOR TETOVO (10,89 КМ )

22. SECTION ARM FOR TEC OSLOMEJ (3,05 КМ)

23. SECTION ARM FOR MAKEDONSKI BROD (20,76 КМ)

24. SECTION ARM FOR PROBISHTIP (12,60 КМ)

It is even more important to mention that on the basis of the analyses from the Feasibility study and the Preliminary drawings referred to above, steps have been undertaken for preparation of General drawings for 5 priority sections for the following main gas pipeline networks such as:

-GENERAL DRAWING FOR THE SECTION KLECHOVCE – NEGOTINO, LOT 1

- GENERAL DRAWING FOR THE SECTION KAVADARCI – BITOLA, LOT 2

- GENERAL DRAWING FOR THE SECTION JUNCTION POINT STIP – HAMZALI, LOT 3

-GENERAL DRAWING FOR THE SECTION HAMZALI – STOJAKOVO, LOT 4

-GENERAL DRAWING FOR THE SECTION SKOPJE – KICHEVO, LOT 5

The General drawings for the lots from 1 to 4 were completed during 2012, and for lot 5 it is expected that until the end of 2012 the entire documentation will be completed.

It can be emphasized that on the basis of the prepared General drawings, and in accordance with the terms and conditions for compensation of the clearing debt with the Russian Federation, in 2013 should commence the construction of the section Klechovce – Kavadarci.

As a result of that it seems that the next reasonable step shall be the implementation of systematic analyses for distribution network development in the regions and cities in order to feel the real benefits from the gas pipeline in the country in the near future.

Therefore, in the Terms of reference are presented the methodological baselines for preparation of a FEASIBILITY STUDY FOR DEVELOPMENT OF DISTRIBUTION NETWORKS FOR NATURAL GAS IN THE REPUBLIC OF MACEDONIA, the steps that need to be undertaken as a combination of technical and economic analyses in order to take into consideration the following aspects:

  • Analysis of the existing state of the construction rate of the distribution networks of the gas pipeline system in the regions and cities by defining the meaning of “distribution network”, “main gas pipeline” and “distribution gas pipeline” with special accent to the regulation of the existing gas pipelines;
  • Analysis of the regional conditions for the development of the gas pipeline system distribution networks from economical and technical point of view;
  • Analysis and proposals for development and extension of the gas pipeline system distribution networks taking into consideration the legal, institutional and political conditions in the country;
  • Review of the possibilities for connecting the distribution gas pipelines to the main gas pipelines that have already been executed, will be executed or have been projected for the period of the next 20-30 years.

The Feasibility study shall result in prepared documentation that clearly defines the conditions for the execution of the distribution gas pipelines in certain regions and/or municipalities, and one of the basic tasks is to define the priority regions and municipalities where the realization of the project is urgent. Furthermore, it shall represent a basis for determining a model for future financing of the distribution system extensions (granting concession, public private partnership or other ways).

These means that the goal of the Terms of Reference is to project all further steps for designing, investment and execution of the distribution gas pipelines as detailed as possible. This also results from the fact that the structures as main and local gas pipelines and product pipelines are structures of first category according to the Building Law for which is defined an appropriate legal procedure for design and analyses.

I.2REVIEW OF THE EXISTING STATES

I.2.1Existing level of the gas pipeline system construction state in the Republic of Macedonia

For the presentation of the existing state of the main and local gas pipeline network in the Republic of Macedonia are used data from a document of the Ministry of Economics designated as: “Basic characteristics and current development projects for the gas pipeline system of the Republic of Macedonia” – Skopje, March 2008, as well as from the above mentioned Feasibility study and the Preliminary drawings.

At the very beginning it shall be mentioned that because of the energy structure of the Republic of Macedonia in order to introduce low priced and environment friendly fuel and to increase the safety of energy supply in 1991, the Government of the Republic of Macedonia and Makpetrol A.D. Skopje decided to finance together the construction of the gas pipeline system in the Republic of Macedonia.

One part of the main gas pipeline network in Macedonia, i.e. from Deve Bair to Skopje, was constructed in the period from 1993 to 1997 by engaging Russian companies under the leadership of Gaseksport from Moscow. After implementing the tests and inspections, as well as the trial operation, in 1997 took place the official commissioning of the gas pipeline, namely the section from the Bulgarian border (Deve Bair) to Skopje.

More specifically, the main gas pipeline has a dimension of 530mm, with maximal operating pressure of 54 bar and length of 98,197 km. The starting point of the main gas pipeline is located at the Macedonian-Bulgarian border near the border crossing Deve Bair, at an altitude of 1150 m, and the ending point is located in the region of the city of Skopje at an altitude of 310 m. Therefore this main gas pipeline is called “Magistrala Deve Bair – Skopje”.

The gas pipeline has an annual capacity of 800106 m3with the possibility for increasing the capacity up to 1200106 m3or 1300106 m3by constructing a compressor station. The gas pipeline is made of steel steamed pipes produced by FZC-Kumanovo with quality K52 according to GOST 20295. For the passive anti-corrosion protection of the underground part of the pipeline are used polyethylene tapes “Nito” and “Poliken”. For the active anti-corrosion protection is used a cathodic protection with imposed current and galvanic anodes. The maximum throughput capacity of the main gas pipeline amounts 145.000 m3/h.

The primary concept for the application of natural gas in the Republic of Macedonia was to use it as fuel in the industrial and thermal power plants which would allow a replacement of the mazout and the other fuels.

The natural gas is being supplied at the exchange point MMS (Main Measuring Station) - Zhidilovo, 4 km away from the border between the Republic of Macedonia and Republic of Bulgaria, near the town Kriva Palanka.

By adopting the Law on amending and appending the Energy Law, the main gas pipeline, the distribution gas pipelines and the urban gas networks become one unit called gas pipeline system.

For the maintenance of the throughput capacity of the main gas pipeline cleaning stations have been constructed: dispatch-cleaning station at the same location as the MMS Zhidilovo and parlor cleaning station at the ending point of the main gas pipeline. The cleaning stations are used for executing planed overhaul works, as well as for switching off certain sections of the main gas pipeline. For extreme situations block stations with block valves and aeration candles. At the same time the block stations represent the starting point of the distribution gas pipelines. Therefore the block stations bear the name of the city – consumer that is connected to the main gas pipeline through the distribution gas pipeline.

6 block stations have been constructed at the main gas pipeline: Kriva Palanka, Ginovci, Kratovo, Veles, Kumanovo and Skopje-Jug.

Furthermore, connection points for distribution gas pipelines have been installed in perspective: connection point towards Veles, South Serbia, Romanovce and Tetovo.

The existing (constructed) six distribution gas pipelines have a total length of 24,95 km, and the basic characteristics of the separate distribution gas pipelines are listed in the table below:

Table 1. Distribution gas pipelines overview

Distribution gas pipeline towards / Kriva Palanka / Ginovci / Kratovo / Kumanovo / Skopje-Jug / Skopje-Sever
Length (km) / 1,521 / 1,692 / 4,592 / 6,972 / 8,314 / 1,859
Diameter (mm) / 108 / 108 / 108 / 219 / 426 / 325

Five Main Measuring and Control Stations have been installed and their capacities, input and output pressure are listed in the table below:

Table 2. Main Measuring and Control Stations Overview (MMCS)

MMCS / Capacity m3/h / Designed pressure (bar)
Input / Output
1 / Skkopje-Sever / 35000/70000/105000 / 54-20 / 13-9
2 / Skopje-Jug / 35000/70000/105000 / 54-20 / 13-9
3 / Kumanovo / 20000 / 54-20 / 13-9
4 / Kratovo / 4500 / 54-25 / 13-9
5 / Kriva Palanka / 4500 / 54-25 / 13-9

Within the first gasification stage in the Republic of Macedonia urban gas pipeline networks have been constructed in Skopje, Kumanovo, Kratovo and Kriva Palanka. The data are listed in the table below.

Table 3. Overview of the general data for the installed urban gas pipeline networks

Nominal diameter (mm) / Skopje
Length (m) / Kumanovo
Length (m) / Kratovo
Length (m) / Kriva Palanka Length (m)
DN 500 / 6.394
DN 400 / 14.198
DN 300 / 1.365
DN 200 / 1.330 / 939
DN 150 / 1.342 / 4.596 / 5.333
DN 100 / 1.210 / 10 / 569 / 920
DN 50 / 30 / 30
Total: / 25.869 / 5.575 / 5.902 / 920

It shall be noted that from the designed primary distribution network in Skopje there are 14 km left that shall be finished within the first stage of the so called “closing the ring”. In the first gasification stage as direct consumers of natural gas appear only the industrial consumers.

I.2.3. Presentation of the basic elements for the designed gas pipelines system development in the next period

For the presentation of the basic elements for the designed gas pipeline system development in the next period data from the following documents were taken:

  • Spatial plan of the Republic of Macedonia, Spatial Development Strategy, Government of the Republic of Macedonia, 2004.
  • Feasibility study for gas pipeline system in the Republic of Macedonia, prepared by the Consortium: Prostor DOO – Kumanovo, Energo Sistem doo Skopje, GASTECSofija, Petrol Ljubljana and EIHPZagreb from June 2010.

According to the analyses it is planned for the next period to finish the technical documentation and the construction of the following sections:

1. SECTION KLECHOVCE – KAVADARCI (КМ 0+000,00-КМ 96+588,74) LOT 1

2. SECTION KAVADARCI – BITOLA (КМ 0+000,00-КМ 91+790,30) LOT 2

3. SECTION JUNCTION POINT STIP – HAMZALI (КМ 0+000,00-КМ 59+559,09) LOT 3

4. SECTION JUNCTION POINT HAMZALI – GEVGELIJA (КМ 0+000,00-КМ 50+393,21) LOT 4

5. SECTION SKOPJE – KICHEVO (КМ 0+000,00-КМ 110+698,08) LOT 5

6. SECTION KICHEVO – JUNCTION POINT OHRID (КМ 0+000,00 - КМ 48+342,36)

7. SECTION BITOLA – OHRID (КМ 0+000,00 - КМ 63+494,40)

8. SECTION SVETI NIKOLE – VELES (27,19 КМ)

9. SECTION VRSAKOVO – KOCHANI – RAZLOVCI (65,93 КМ)

10. SECTION RAZLOVCI – BEROVO (17,58 КМ)

11. SECTION RAZLOVCI – DELCHEVO (14,65 КМ)

12. SECTION PRILEP – KRUSHEVO (26,02 КМ)

13. SECTION HAMZALI – NOVO SELO (24,74 КМ)

14. SECTION REK BITOLA – KREMENICA (16,98 КМ)

15. SECTION MATKA - GRACHANI (15,76 КМ)

16. SECTION KLECHOVCE - SOPOT (22,16 КМ)

17. SECTION STRUGA - KJAFASAN (26,72 КМ)

18. SECTION NEGOTINO – TEC NEGOTINO (5,54 КМ)

19. SECTION ARM FOR GEVGELIJA (6,57 КМ)

20. SECTION ARM FOR DEMIR KAPIJA (11,57 КМ)

21. SECTION ARM FOR TETOVO (10,89 КМ )

22. SECTION ARM FOR TEC OSLOMEJ (3,05 КМ)

23. SECTION ARM FOR MAKEDONSKI BROD (20,76 КМ)

24. SECTION ARM FOR PROBISHTIP (12,60 КМ)

In terms of the existing conditions there are also certain analyses for the possible utilization of the gas in the Spatial Plan of the Republic of Macedonia. In this document the issue has been addressed in part 2 (Utilization and protection of natural resources), Section 2.5 (Energy sources and energy infrastructure).

Based on the observations of the Spatial Plan of RM, the following can be stated:

  • It is estimated that the certain forms of energy included in the total energy distributed to the consumers shall be the following: solid fuels contribute to 20%, liquid fuels to 40%, electric energy to 20-30% and thermal energy to 10-15%;
  • Gaseous fuels contribute insignificantly, suggesting that in future this source shall be used in a better way, i.e. in the Spatial Plan it is stated that “The idea of using the natural gas as an energy resource will provide safer and better working conditions for the energy complex in our country”.

In order to illustrate this statement, the following tables present a forecast for the participation of the individual forms of energy by 2020.

Table4. Presentation and forecast by 2020 for the participation of the individual forms of energy distributed to the consumers, expressed in % (source: Spatial Plan of RM)

Form of energy / 1980 / 1995 / 2010 / 2020
Solid fuels / 20,4 / 22,5 / 17,1 / 16,7 / 13 / 12,3
Liquid fuels / 44,1 / 38,3 / 36,9 / 35,3 / 39,6 / 38,6
Gaseous fuels / 1 / - / 6,1 / 5,4 / 7,4 / 6,5
Electrical energy / 19,7 / 29,2 / 24,9 / 27,7 / 21,8 / 25,7
Thermal energy / 14,7 / 9 / 13,5 / 13,6 / 16,7 / 15,6
Alternative forms of energy / 0,1 / 1 / 1,5 / 1,3 / 1,5 / 1,3

II.SPECIAL PART

II. 1. SUBJECT OF THE TERMS OF REFERENCE

The Terms of Reference shall include the necessary studies and enclosures for preparation of:

  1. Feasibility study for assessment of the economic and financial justification for construction of the gas pipeline distribution network in the country per regions and municipalities;
  2. In relation to the route of the local gas pipeline distribution network being at the stage of preliminary drawings, it is necessary to determine the initial lengths of the network, the possible diameters, the operation pressure etc.
  3. Certain data for the internal infrastructure in the settlements, possible connection points and some other details shall be adjusted to the General and Detailed Urban Plans for each populated area.

II. 2. GOALS OF THE TERMS OF REFERENCE

The main goal of the Terms of reference shall be the specification of the conditions for preparation of a Feasibility study for the distribution networks, which shall represent a basis for evaluation of the possible variants for construction of the network in the regions or municipalities in the territory of the Republic of Macedonia in terms of the reference and designed condition of the gas pipeline system. The baseline for the implementation of the analysis shall be used the planning regions in the country, presented on the picture below.

Picture 1.Designed regions for conducting an analysis in the Republic of Macedonia

(Source – Feasibility study)

According to the analyses, the persons preparing the Study shall not be limited within the administrative planning regions to single outspecific priority planning regions, municipalities or sub-regions which could form a whole for granting concession for one part of the land.

The preparation of the Feasibility study shall answer the following questions:

-Is there a satisfying economic and financial justification for construction of a gas pipeline distribution network or parts thereof within the specified regions;

-What is the optimal way for realization of certain parts of the distribution network in terms of the technical, economic, financial, environmental and traffic exploitation conditions and other conditions;

-What is the optimal time period (year) for commissioning in case of construction of parts of the gas pipeline network per regions;

-What are the conditions and possible locations for construction of underground or other types of natural gas repositories per regions and municipalities;

-Other questions that may arise from the preparation of the Study.

II. 3. STAGES OF THE ELABORATION OF THE STUDY

The elaboration of the Feasibility study may generally be divided into the following phases:

Stage 1:Collection of the necessary project data and documentation, as well as research and analyses of the existing states related to the current condition of the gas pipeline infrastructure per regions or municipalities.

Stage 2:Analysis of the existing capacity conditions where natural gas would be used in any settlement or power plant (electricity station, central heating companies etc.) whereby the following consumers shall be taken into consideration:

1)Households – based on the change of the number of inhabitants and households an analysis of the change of the number of inhabitants and households shall be carried out, as well as an assessment of the energy consumption demands per municipalities and settlements. The dynamic of the change of the number of inhabitants shall be determined on the basis of available demographic data or the spatial plans of the municipalities and cities in the observed area.

2)Service sector – based on the data for utility bill collection (or a professional assessment based on the electric power consumption) an analysis shall be carried out of the energy consumption in the service sector per municipalities and settlements and analysis of the energy consumption in the base year and forecast for the energy demands in future.

3)Industry – an analysis shall be carried out of the energy consumption in the industrial sector for 2009 and on the basis of the obtained results an analysis shall be carried out of the energy consumption in the base year and a forecast for the energy demands in future.

An analysis of the socioeconomic and demographic characteristics of the regions and municipalities shall be also carried out within this stage.