BATEMAN wins Turkmenistan gas compression contract

Bateman Project Holdings Limited (BATEMAN) has been awarded a US$180 million contract to engineer and supply gas compression equipment to Turkmenistan.

The financing arrangements covering 100 % of the contract were agreed at a meeting in Ashkebad, Turkmenistan between BATEMAN, ABN AMRO bank, Turkmengas and TURKMENVNESHECONOBANK and Merhav (the owner’s representative). Formalizing the documentation to initiate the project will take about 90 days to complete, by which time the plan of execution should be ready.

This is the first time that the Export-Import Bank of the United States (Ex-Im) has financed an oil transaction in Turkmenistan. This is also the first time Ex-Im has entered into a joint financing agreement with the credit agency of the Czechoslovakian Republic (EGAP) for a project in Central Asia.

The BATEMAN group will be acting as the main contractor for the project. Dresser Rand Co., Corning, New York and General Electric Company (GE), Schenedtady, New York will provide the compressors and power turbines.

The Turkmenistan gas infrastructure upgrade project will allow Turkmenistan to transport and sell natural gas to external markets. This will increase the country’s gas export earnings and support future development of the economy. The gas compression equipment to be installed will compensate for the reduction of gas well pressure and significantly enhance the productive capacity of the gas field. The project comprises a booster compression station at Ilialy, a gas metering station at Derialik and remote monitoring systems along the 750 km length of the pipeline.

The existing compression station at Ilialy, which was built with Russian equipment some 25 years ago, will be replaced. The capacity of the new station will be 32 billion Nm 3 /yr or 96 million Nm 3 /day of natural pipeline-quality gas.

The turbo compressor package to be supplied by Dresser Rand consists of a high efficiency compressor and turbine and a gas generator, together with control and instrumentation systems, including an anti-surge system. The reliability and long service specifications of the equipment are features of the project with the compressor guaranteed for a 20 yr minimum life and at least a 3 yr uninterrupted operation. The power turbine has a 100 000 hr guarantee.

At Derialik on the border of the country a gas metering station, based on western standards and with a capacity of 60 billion Nm 3 /yr, will be erected as skid mounted units onto the three existing main gas pipelines, one being 1,4 m in diameter and the other two 1,0 m in diameter.

The remote-control system will monitor and control the five booster stations along the 750 km length of the pipeline, as well as the commercial gas metering station and the system’s shut-off valves.

Dr John P Herselman, BATEMAN Chief Executive, declared that the financing of the Turkmenistan project was another step in the group’s efforts to expand its business in the oil and gas sector in the Commonwealth of Independent States. BATEMAN will draw on its current experience from the Tomskneft gas compressor facility in Siberia, as well as the group’s experience in the United States, to successfully complete this project.

More details may be obtained from Shaul Morgenstern on email o&g@batemanengineering.com.

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