Floating TECs towards commissioning/ KESH opens the tender for the purchase of 4000 tons of oil

2024-02-02 07:35:00, Ekonomi CNA

Floating TECs towards commissioning/ KESH opens the tender for the purchase of

The Albanian Electricity Corporation (KESH) seems to be moving towards the commissioning of two floating thermal power plants which have been located in the Triport of Vlora for a year and a half.

A recent announcement on the website of KESH announced the opening of the procedure "On-site supply of fuel to Floating Thermal Power Plants, Tripot, Vlorë" where interested operators must submit their offers for fuel no later than February 9 2024.

Referring to annex 3 accompanying the procedure, it is informed that the procured quantity will be 4000 metric tons. This quantity according to the document will have a delivery availability of 3 months from the date of delivery of the first shipment. According to a forecast in this annex the first cargo delivered will be about 1200 metric tons on the first day, to 1000 metric tons on the 21st day and 1800 metric tons on the 42nd day.

"Maximum daily delivery - To coordinate with the operator / 24 hour standby

Maximum local delivery; -2 40 ton trucks at the same time, 7m3/hour

Note: The above schedule is presented for orientation reference, as the best possible case. The contractual term of delivery will be the "Period of availability of delivery" (3 months from the date of delivery of Cargo-I) it is stated in the clarification of KESH.

In the qualification criteria, it is determined that the first day of delivery will be negotiated and defined in the contract, but not later than the first week of March.

Tender terms

In the terms of reference of the KESH procedure, it defines the conditions that must be fulfilled by the fuel that will be used for thermal generators.

"For operational purposes, these thermal assets need to be supplied with HFO fuel, defined on the basis of technical specifications and in reference to ISO 8217, such as ISO RME, with a sulfur content of no more than 0.5%, such as and small amounts of LFO hydrocarbon fuel," the document states.

The same specify that at the stage when the floating assets are placed in the final place where they are anchored to the ground and the installation processes for their incorporation with the country's energy infrastructure have been completed, it becomes necessary for the company to supply these generating assets with fuel necessary during their commissioning phase. For this reason, from the company's side, it is evident that for supply purposes, the need for the service to be procured is as follows: On-site fuel supply of the asset.

"The floating assets have fuel management and storage capacities in a total of about 1,000 (one thousand) tons of fuel. The estimated consumption of fuel for 1 MWh is about 229 Kg, which means that, in the case of using the plant at full capacity, the need for supply is about 500 tons of fuel per day, since the amount of about another 500 tons will serve as a contingency reserve to guarantee the continuity of production. Within this procedure, the supply of fuel is provided in accordance with the need of supply for the period of commissioning and testing of the floating thermal asset" it is stated in the terms of KESH.

Exchange prices drop to around 100 euros/MW, from 290 euros/MW when the TPPs were taken over

The thermal generating assets were taken as a measure in 2022 in the conditions of the energy crisis. The procedure was announced at the end of 2021, but only in April 2022, it was signed between the parties (Exelerate and Renco & KESH sh.a). In September 2022, floating assets were placed in the area of ??Triport, near Petrolifera.

These assets have never been put into operation, while the cost of 1 MW of energy produced at the beginning of 2023 was calculated at over 290 euros. This cost is significantly higher than the cost that today energy can be bought on the stock exchange where prices, although they have not gone to the pre-crisis level, have decreased significantly, being traded at an average of 100 euros/MW./ Monitor Magazine