Construction of Paldiski and Puiatu Compressor Stations

On 14 August 2018, Elering AS entered into turnkey contracts with Control Process S.A for the construction of Paldiski and Puiatu compressor stations within the framework of the Estonian-Finnish gas pipeline Balticconnector project. According to the agreements, the operation of the compressor stations was to be transferred to Elering no later than 14 June 2020. Unfortunately, so far the contractor has not been able to complete the design and construction of the plants and put the compressor stations into operation.

During the year, Elering has supported the contractor's activities in completing the stations (eg obtaining work permits for the contractor's employees in an emergency) and, at the contractor's request, changed the contractual intervals to help the contractor get the Paldiski and Puiatu compressor stations up and running as quickly as possible.

The Contractor explanation is that the project completion according to project plans has not been possible due to the COVID-19 and the related special situation.

Regarding the status of the compressor station's construction, unfortunately contractor has not presented any time schedules since July 2020, and none of time schedules or contractual milestones have fulfilled by the contractor. Civil and mechanical construction works are in finalization phase, pre-commissioning has been started in parallel with construction works in both station.

In Puiatu compressor station mechanical and technological and control systems are installed, construction works of roads, fences, security systems are still ongoing. Start of commissioning of Puiatu compressor station is expected during November.

In Paldiski compressor station mechanical and technological and control systems are in finalization stage, some of piping systems have to be re-tested or re-constructed . Construction works of firefighting systems, roads, fences and security systems are still ongoing.

Completion of the compressor stations and achieving full operation of the Balticconnector cluster continues to be the highest priority for Elering.

The capacities communicated to the market previously on 28.10.2020 assumed Puiatu compressor station being ready for market use by February 2021, which is the current estimate by Elering based on status of construction works. However, due to issues  mentioned above there is no certainty that contractor is able to fulfil milestones required to reach this time schedule. Elering will give regular updates to the market related to the finalised works in order to give more transparent view of the status. Taking this into account further delays are possible and if there is any indication on those, the values for the period 2021 will be updated to reflect the situation. In this case the updated capacity values would be in the range given to the market last year same period.  

Reaching Balticconnector full capacity towards Finland after commissioning of compressor stations requires sufficient inlet pressure from Latvia. TSOs of the common Zone are in cooperation to assess the possible scenarios in order to assure as high operational flow at Balticconnector as technically feasible. One of the main targets of the TSO cooperation is to increase market understanding and awareness about how the regional gas system works and how the market services possibilities and limitations are reached.