Ukrnafta, Ukraine’s state-owned oil and gas producer, has launched a major investment project to construct a modern 250 MW gas-fired combined heat and power plant in the Dnipropetrovsk region. The project is being implemented with financial and institutional support from the European Bank for Reconstruction and Development under an agreement aimed at developing distributed gas-fired generation and strengthening the resilience of Ukraine’s energy system.
The new energy facility will operate using combined-cycle gas turbine technology and will be fuelled by natural gas produced by Ukrnafta. The plant is designed to provide nearby territorial communities with electricity, district heating and process steam. It will also supply electricity to Ukraine’s Integrated Power System, operating both in baseload mode and providing ancillary services for grid flexibility and balancing.
Construction of the cogeneration plant is planned in two consecutive phases. The first phase will involve the installation and commissioning of gas turbines in open-cycle gas turbine mode. Ukrnafta has already received the first three Siemens gas turbines as part of donor assistance. The second phase will include the installation of heat recovery steam generators, a steam turbine and auxiliary equipment, enabling the plant to transition to the more efficient combined-cycle configuration.
The company is currently working to secure additional project financing for the purchase of the remaining equipment, including step-up transformers. Together with EBRD specialists, Ukrnafta is conducting a second round of market consultations with international manufacturers and suppliers.
All tender procedures and procurement activities under the project are being conducted in strict compliance with EBRD regulations and policies. The final contract for construction and installation works is expected to be signed under an international Design-Build model based on the standard FIDIC Yellow Book form.
