(CWP.05.UA) INOGATE Technical Secretariat and Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives

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1 ACTIVITY COMPLETION REPORT Assistance with the implementation of the Action Plan on Harmonisation of Standards and Codes in Electricity and Gas Sectors of Ukraine : (CWP.05.UA) INOGATE Technical Secretariat and Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives Contract No 2011/ A project within the INOGATE Programme Implemented by: Ramboll Denmark A/S (lead partner) EIR Global sprl. The British Standards Institution LDK Consultants S.A. MVV decon GmbH ICF International Statistics Denmark Energy Institute Hrvoje Požar

2 Document title Document status Assistance with the implementation of the Action Plan on Harmonisation of Standards and Codes in Electricity and Gas Sectors of Ukraine : (CWP.05.UA) Draft Prepared by Name Dr.Viktor Petrenko Mr. Ginzburg Mrs. Helen Bekina Date / Checked by Approved by Nikos Tsakalidis Adrian Twomey Peter Larsen March 2016 This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

3 Table of Contents 1 PART 1 EUROPEAN COMMISSION Background Essence of the Activity Key Findings Ownership and Benefits of the Activity Recommendations Challenges Faced Impact Matrix PART 2 - BENEFICIARIES Executive Summary Background and objectives Establish a Working Network (Working / Learning groups) for the study, adoption, implementation and application of the standards used in the European gas infrastructure Overview of the seminar Development of the first draft of the program of adoption the set of European gas functional standards with reference standards on 2016 and Main results and impact achieved Recommendations from the ITS experts Challenges faced Annexes Annex 1 Report on the results of work carried out in (CWP05UA (g)) Annex 2 Minutes of the Small Steering Committee meeting for INOGATE Project Implementation for group 2 "Harmonisation of standards and codes in the electricity and gas sector" Annex 3. Working Group Composition for the examination of standards planned to be introduced in Ukraine in the framework of the INOGATE project during Annex 4. Minutes 2 of the meeting of the small steering committee as regard to implementation of the INOGATE project under Subcomponent 2 Harmonisation of electricity and gas standards and codes Annex 5. Seminar agenda Annex 6.List of participants Annex 7. Answers on most important questions about the European gas functional standards Annex 8 Summary of key issues discussed Annex 9 - The draft of the program of adoption the set of European gas functional standards with reference standards on 2016 and Annex 10 List of additional priority gas standards recommended for adoption by Ukraine in 2016-

4 2017 1

5 Abbreviations and acronyms AA BS CEN CENELEC CWP DCFTA ECT ECS EU IEC ISO ITS PCs TCs UA Association Agreement British Standard European Committee for Standardisation European Committee for Electrotechnical Standardisation Country Work Plan Deep and Comprehensive Free Trade Area Energy Community Treaty Energy Community Secretariat European Union International Electrotechnical Commission International Organisation for Standardisation INOGATE Technical Secretariat INOGATE Partner Countries Technical Committees Ukraine 5

6 1 PART 1 EUROPEAN COMMISSION 1.1 Background Assignment Title: Assistance with the implementation of the Action Plan on Harmonisation of Standards and Codes in Electricity and Gas Sectors of Ukraine. (CWP.05.UA) Country and Dates: Ukraine, 9 December March 2016 Beneficiary Organisation(s): Beneficiary Organisation s key contact persons name and address Deliverables Produced Expert Team Members Main beneficiary: Ukrtransgaz, Ukrainian Gas Technical Committees, NAK NAFTOGAZ, Ministry of Economic Development and Trade, Ministry of Energy and Coal Industry. Mr. Klun, Deputy, Head of the Department of Standardisation and Quality Management System. klyun-am@utg.ua 1. Updated list of existing gas priority standards taking account of the newly introduced EN standards; 2. A document explaining in detail the changes for those translated standards that required an update; 3. A plan for the adoption of a minimum necessary list of auxiliary standards (with terms and recommended methods of adoption: endorsement, reprinting, etc.) for the implementation of priority functional standards; 4. Learning materials for the Working / Learning groups on each functional standards; 5. Seminar delivered for a maximum of 20 participants; 6. Seminar material prepared and disseminated to participants, comprehensive answers to problems identified in the course of the implementation of this task; 7. The final report, including key findings, qualitative and quantitative assessment of results and the issues raised during the seminar as well as next steps; 1. Key expert 2, Nikos Tsakalidis 2. Senior Standardisation Expert / Covering Electricity and Gas, Viktor Petrenko 3. Senior Gas Industry Expert/ Mr Philip Winnard 4. Junior Gas industry and Standardisation Expert/Mr.Mykhailo Ginzburg 5. Junior Expert/ Ms Helen Bekina 6

7 1.2 Essence of the Activity The overall objective of this task was to support Ukraine in the adoption, introduction and implementation of priority European gas standards as identified in the Road Maps and Action Plan on Harmonisation of Standards and Codes in Electricity and Gas Sectors of Ukraine and which are a requirement for the signed EU Association Agreement. 1.3 Key Findings The results achieved in the field of harmonization of gas standards in Ukraine at the start of the task were shared; The latest published editions of European gas functional standards were identified, the implementation of which is essential for the effective coming into force of the Law On Natural Gas Market (primary legislation), as well as the Code of the Gas Transportation System and Gas Storage Facilities Code (secondary legislation); A Small Steering Committee was created for the operational management of the task and a Working / Learning Group was set up for each of the European gas functional standards selected for implementation; Training materials were developed to study of each of the European gas functional standards selected for implementation; Questions from the working / learning groups were collected, processed and summarized, and later discussed at the final seminar for the activity; Assistance was provided to TC 133 and Ukrtransgaz to include 7 of the European gas functional standards in the National standardization plan of Ukraine for 2016 (Appendix 1); Assistance was provided to TC 133 and Ukrtransgaz in the preparation of translations of European gas functional standards and their publication as reference annexes; A small Steering Committee developed and approved The first draft of the program of adoption the set of European gas functional standards with reference standards A small Steering Committee developed and approved additional list of priority gas standards for 2016 and Ownership and Benefits of the Activity The main benefits of the activity for the Beneficiary are: 1) A deep understanding by leading experts in Ukrtransgaz and NAK Naftogaz of the nature and peculiarities of the application of selected European gas functional standards; 2) A deep understanding by leading experts of Ukrtransgaz and NAK Naftogaz of the need for simultaneous adoption and implementation of reference (normative and informative) Standards; 3) The first draft of the program of adoption of the set of European gas functional standards with reference standards developed can be used to include in the National Standardization Plan and as a justification for the development of Terms of Reference for international technical assistance; 4) The positive experience of working on the study, adoption, and implementation of the fundamental normative documents of major economic importance; 7

8 1.5 Recommendations The development of Road Maps and Action Plans was an essential first step to achieve European standardisation in Ukraine. In determining the next steps it is necessary to fully understand the current situation in the Ukrainian gas sector. Based on the experience gained in this activity, the ITS expert team makes the following recommendation: 1. Further implementation of technical assistance projects to apply a similar framework to the one used in the delivery of CWP 05UA for the organisation of the harmonization of standards,: A seminar on the group of standards selected for the implementation; A study of standards in working/learning groups through preparatory work for the professional translations of standards; Establishing a list of reference standards for the effective implementation of selected standards. Withdrawal of national standards, codes of practice and other legal documents or their alignment with European standards. A workshop with international experts to discuss issues raised and the practical application of the implemented standards; Adoption of all the set of standards, including all reference standards; Monitoring the implementation of standards. 2. Arrange regional training workshops (meetings) for technical specialists of Partner Countries to study the experience of implementation and best practice in the use of standards (codes of practice, technical regulations). 3. Conduct appropriate training sessions for top management of companies. 4. Establish close contact with CEN / CENELEC to carry out the following tasks: Conduct a training (familiarisation) seminar on the organisation of work of a Technical Committee. Familiarisation with the working of Technical Committees from Eastern European countries (including small countries); Obtaining methodological recommendations from leading Western experts in terms of specifying the functions and content of work of the Technical Committees; Improvement of professional skill of the Technical Committee experts within the EU projects. Assistance in the creation and strengthening of relevant services (standardisation services) in the national companies and in personnel training. 5. Work towards the active involvement of national gas companies in the process of harmonisation of standards. 6. Facilitate new projects in Ukraine aimed at the implementation of the remaining part of priority standards. 8

9 7. Based on the objectives that Ukraine has set for itself, draw up a program for the implementation of standards ensuring: transition to modern methods of monitoring and diagnostics of gas infrastructure; efficient gas extraction; development of marine gas infrastructure. 1.6 Challenges Faced The main challenges that have been faced include: 1. Lack of compliance between Ukrainian and European Technical Committees. Re-registration of the Technical Committees in accordance with the new Ukrainian Law On Standardization and New Fundamental Standards is not finished; 2. Complexity of the practical implementation of the provisions of the Ukrainian new Law On Standardization; 3. Publication of a new edition of EN 1776 in December 2015, after the approval of this activity; 4. High work load on leading experts of Ukrtransgaz and very tight schedule. 1.7 Impact Matrix Impact Area Developments 2015 (%) Apr 2016 (%) Policy Fulfilment of obligations under the AA, DCFTA and ECT (adoption and implementation of the European gas functional standards for main pipelines) Level of adoption of the current version of European gas functional standards for main pipelines in Ukraine 0% Level of preparation for adoption of European gas functional standards for main pipelines in Ukraine - 100% Regulation Gradual adoption and implementation of normative reference standards 59% up to 65% Technology Gradual upgrade and modernisation of some of the Gas infrastructure 0% 50 %, the European gas functional standards for main pipelines are used in the modernisation programme in UA (ongoing) Economics Decrease in O&M cost 0% N/A N/A N/A 9

10 Reduction in gas leakages/m3 saved Social Safer gas installations, decrease in potential accidents. Reliability of electricity and gas supply N/A N/A N/A N/A Other 10

11 2 PART 2 - BENEFICIARIES 2.1 Executive Summary The lack of harmonisation of standards and best practice in the gas sector are major obstacles to the convergence of energy markets between the EU and Ukraine. INOGATE supports the replacement of the currently applied Soviet system, based on GOST standards, with a new dual system of technical legislation supported by voluntary standards. This system is aimed at a greater convergence of gas sectors, the harmonisation of technical standards, enhancement of gas cross border cooperation and the improvement of efficiency, security and reliability of gas supply infrastructure with a focus on main transit gas pipelines. The results of the work done allowed Ukraine to: Begin the process of adoption and simultaneous implementation of all the current editions of the gas functional standards for maximum operating pressure over 16 bar. As a result, Ukraine will have three top-levels of the "pyramid": the Law on Gas, technical safety regulations of the gas transportation system and underground gas storage facilities, and the European gas standards as a basis. The next step is to adapt company standards used to date and/or adopt new company and/or industry standards similar to European technical codes (for example, the DVGW codes of practice); Gain experience in the intensive study of standards, which can be widely used in the implementation of the new programme of standards; The developed program of reference standardsfor adoption not only ensures the effective use of gas functional standards for the gas mains, but is the first step in the adoption and implementation of functional standards for medium-pressure gas pipelines. The established Working Network (Working/Learning Groups) can provide the study and adoption of the remaining CEN/TC 234 functional standards in the next few years with appropriate international assistance. 2.2 Background and objectives As part of the activities under Sub-Component B2 on Standards a team of ITS experts have developed a Road Map and Action Plan on Harmonisation of Standards and Codes in the Electricity and Gas sectors for Ukraine and other the INOGATE Partner Countries. These technical documents provide a tailored analysis of each country s standardisation system, the details and the steps that should be taken to approximate their system to the one used in EU Member States. The results of the Project work within the initial Terms of Reference for the harmonization of standards are given in the Report on the results of work carried out in (CWP05UA (g) (please see Annex 1). In 2015, significant changes have occurred in the field of technical regulation and standardization in the gas sector of Ukraine. In particular a number of legislative regulatory acts have been adopted: 11

12 Law On natural gas market Law On licensing of business activity Law On technical regulations and compliance assessment Law On standardisation Law On metrology and metrological activity A programme of activity of the Cabinet of Ministers of Ukraine, approved by Resolution 695 of the Cabinet of Ministers of Ukraine and by Resolution 26-VIII of the Parliament of Ukraine For the implementation of the above mentioned Laws in Ukraine, legislative regulatory acts of the central executive bodies (secondary legislation) were developed: Code of gas transportation system Code of underground gas storage Code of gas distribution systems National Action Plan Rules of natural gas delivery Rules of security of natural gas supply Procedure of execution of certification procedure of GTS operator * (under consideration) One of the tasks of the National Standardisation Body (NSB) of Ukraine, according to the Programme of Activity of the Cabinet of Ministers, is to: adopt 1500 national standards harmonised with the EU standards; withdraw about USSR standards adopted up to 1992 It is worth mentioning that the progress of this task is going quite fast: numerous harmonised standards have been adopted, and the NSB has announced by its orders to withdraw over GOST standards and over 2000 DSTU standards identical to GOST standards in In Uktransgaz s system it is necessary to cancel 930 GOST standards. By the end of 2015, Ukraine had adopted 78 gas standards from 132 standards proposed by the ITS Project. Starting in 2013, CEN/TC 234 has adopted the current edition of the European gas functional standards for maximum operating pressure over 16 bar, which will be completed in Thus, there is need for Ukraine to adopt these latest edition of the standards that are significantly different from previous versions. Given the rapid changes in the technical regulation of the gas sector in Ukraine, for the first time the need arose for an almost simultaneous adoption and implementation of European standards for gas pipelines with a maximum operating pressure over 16 bar. These standards are harmonized with secondary legislation: 12

13 Code of gas transportation system / gas storage, (approved by the National Energy Regulation Commission) Technical safety criteria of GTS / gas storage, (to be approved by the Ministry of Energy and Coal Industry of Ukraine) 2.3 Establish a Working Network (Working / Learning groups) for the study, adoption, implementation and application of the standards used in the European gas infrastructure A small Steering Committee was set up for the implementation of this task and to follow-up on the results and impacts achieved (See Annex 2: Minutes of the Small Steering Committee meeting for the INOGATE Project Implementation for subcomponent B2 "Harmonisation of standards and codes in the electricity and gas sector ). According to a decree of this meeting, the Secretary of the Small Steering Committee agreed with the management of PJSC Ukrtransgaz the Working Group Composition for the examination of standards planned to be introduced in Ukraine in the framework of the INOGATE project during 2016 (see Annex3). The next meeting of the small Steering Committee was held in conjunction with the establishing session of the Working/Learning Groups (See Annex 4). For each standard, an Explanatory Note with Annexes was prepared, where Annex 1 is the translation of a standard and Annex2 is a table for comments. At their meetings, members of the working group prepared summary tables of comments that were discussed with the Project experts. Following the discussion, questions were collected to be discussed at the seminar organised as part of the activity. The second area of work in the Working/Learning Groups was to analyse the normative references and reference standards necessary for the effective implementation of functional standards. Based on the results of the discussion, the first edition of The First Draft of the Program for Adoption of the Set of European Gas Functional Standards with Reference Standards was developed. 2.4 Overview of the seminar In this section, we provide the key results and conclusions from the seminar. The complete set of presentations delivered during the seminar can be downloaded in English and Russian from the INOGATE website: The Agenda of seminar is presented in Annex 5 and the list of participants is included in Annex 6. The morning session of the seminar included 3 presentations of ITS experts and the presentation of Mr Klun, Coordinator of Working/ Learning Groups Problems with the implementation of functional gas standards in Ukrtransgaz. Questions to Senior Gas Standardization Expert Mr Phil Winnard on EN1594, EN 12327, EN12186, EN1776. The afternoon session included a discussion of members of Working/ Learning Groups with the Senior Gas Standardization Expert Mr Phil Winnard on EN 1594, EN 12327, EN12186, EN1776 (Moderator Dr Viktor Petrenko Senior Standardization Expert / Task Leader). 13

14 The content of this discussion is summarised in Annex 8. Written answers to the most important issues are presented in the Appendix 7. Dr Viktor Petrenko Senior Standardization Expert / Task Leader - Standardisation Expert presented an additional list of priority standards for Ukraine for 2016 and This proposal was prepared on the basis of analysis problems with the implementation of European gas functional standards. The participants approved the approach of the ITS experts and asked to prepare the first draft of the program of adoption the set of European gas functional standards with reference standards 2.5 Development of the first draft of the program of adoption the set of European gas functional standards with reference standards on 2016 and 2017 The strategic objective of the program developed (see Appendix 8) is the adoption and implementation by PJSC "Ukrtransgaz" and NJSC "Naftogaz of Ukraine" of the lastest editions of the European functional standards for gas pipelines with a maximum operating pressure over 16 bar. The list of additional priority gas standards recommended for adoption by Ukraine in (Annex 10) was developed as an additional supplement to the Road Map for Ukraine. 2.6 Main results and impact achieved Ukraine has begun the process of adoption and simultaneous implementation of all the latest editions of the gas functional standards for maximum operating pressure over 16 bar. As a result, Ukraine will have three top-levels of the "pyramid": the Law on Gas, technical safety regulations of the gas transportation system and underground gas storage facilities, and the European gas standards, as a basis. The next step is to adapt the company standards to European standards and / or adopt new company and/or industry standards similar to, for example, to the DVGW codes of practice; Ukraine gained an experience in the intensive study of standards that can be widely used; The developed program for adoption of reference standards not only ensures the effective use of gas functional standards for gas mains, but is the first step in the adoption and implementation of functional standards for medium-pressure gas pipelines. The Working Network (Working/Learning Groups) were established and can undertake the study and adoption of the remaining CEN/TC 234 functional standards in the next few years, supported by the appropriate international assistance. 2.7 Recommendations from the ITS experts Based on the experience gained this activity, the ITS expert team recommend: 1. Further implementation of technical assistance projects to apply a similar framework to the one used in the delivery of CWP 05UA for the organisation of the harmonization of standards,: A seminar on the group of standards selected for the implementation; 14

15 A study of standards in working/learning groups through preparatory work for the professional translations of standards; Establishing a list of reference standards for the effective implementation of selected standards. Withdrawal of national standards, codes of practice and other legal documents or their alignment with European standards. A workshop with international experts to discuss issues raised and the practical application of the implemented standards; Adoption of all the set of standards, including all reference standards; Monitoring the implementation of standards. 2. Arrange regional training workshops (meetings) for technical specialists of Partner Countries to study the experience of implementation and best practice in the use of standards (codes of practice, technical regulations). 3. Conduct appropriate training sessions for top management of companies. 4. Establish close contact with CEN / CENELEC to carry out the following tasks: Conduct a training (familiarisation) seminar on the organisation of work of a Technical Committee. Familiarisation with the working of Technical Committees from Eastern European countries (including small countries); Obtaining methodological recommendations from leading Western experts in terms of specifying the functions and content of work of the Technical Committees; Improvement of professional skill of the Technical Committee experts within the EU projects. Assistance in the creation and strengthening of relevant services (standardisation services) in the national companies and in personnel training. 5. Work towards the active involvement of national gas companies in the process of harmonisation of standards. 6. Facilitate new projects in Ukraine aimed at the implementation of the remaining part of priority standards. 7. Based on the objectives that Ukraine has set for itself, draw up a program for the implementation of standards ensuring: transition to modern methods of monitoring and diagnostics of gas infrastructure; efficient gas extraction; development of marine gas infrastructure. 2.8 Challenges faced The main challenges that have been faced include: 1. Lack of compliance between Ukrainian and European Technical Committees. Re- 15

16 registration of the Technical Committees in accordance with the new Ukrainian Law On Standardization and New Fundamental Standards is not finished; 2. Complexity of the practical implementation of the provisions of the Ukrainian new Law On Standardization; 3. Publication of a new edition of EN 1776 in December 2015, after the approval of this activity; 4. High work load on leading experts of Ukrtransgaz and very tight schedule. 16

17 3 Annexes 3.1 Annex 1 Report on the results of work carried out in (CWP05UA (g)) Report on the results of work carried out in (CWP05UA (g)) INOGATE Technical Secretariat and Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives Contract No 2011/ A project within the INOGATE Programme Implemented by: Ramboll Denmark A/S (lead partner) EIR Global sprl. The British Standards Institution LDK Consultants S.A. MVV decon GmbH ICF International Statistics Denmark Energy Institute Hrvoje Požar 17

18 Document title Report on the results of work carried out in (CWP05UA (g)) Document status Final Name Date Prepared by Dr. Viktor Petrenko Updated by Dr. Viktor Petrenko Approved by Mr. Nikos Tsakalidis This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union. 18

19 Abbreviations AP СЕN СЕNЕLEC DCFTA DVGW EASC EU FSO GWI IEC INOGATE ISO ITC ITS MARCOGAZ MD NS NSB OEVGW PC RM ТC TEG TJ ToR UA СWP Action Plan European Committee for Standardization European Committee for Electrotechnical Standardization Deep and Comprehensive Free Trade Agreement German Technical and Scientific Association for Gas and Water Euroasian Interstate council for standardization, metrology and certification European Union Formal Standardisation Organisation German Institute of Gas and Heating International Electrotechnical Commission Interstate Oil and GAs Transportation to Europe International Organization for Standardization Interstate Technical Committee for Standardization INOGATE Technical Secretariat Technical Association of the European Natural Gas Industry Republic of Moldova National Standard National Standardisation Body Austrian Gas and Water Industry Association Partner Country Road Map Technical Committee (standardisation unit) Technical Expert Group Tajikistan Terms of Reference Ukraine Country Working Plan 19

20 Table of Contents Abbreviations Executive Summary Introduction Regional activities and results Regional Seminar Aligning the standardisation systems with the EU standardisation system based on the New Approach Brussels, 29-30th January Regional Seminar and Study Visit Development of Harmonization Road Maps and Action Plans, and Capacity Building recommendations London, 8-11th July Regional Study Visit Gas Transmission Aspects Bonn and Essen, 9-11th April Results of development and implementation of the Road Maps and Action Plans in Ukraine Conclusion

21 Executive Summary The lack of harmonisation of standards and best practices in the electricity and gas sector are major obstacles to the convergence of energy markets between the EU and Ukraine I provides for replacement of the old Soviet system, based on GOST standards, by a new dual system of technical legislation supported by voluntary standards, aimed at the greater convergence of electricity and gas sectors, harmonisation of technical standards, enhancement of electricity and gas cross border cooperation and improvement of efficiency, security and reliability of energy supply infrastructure with a focus on main transit gas pipelines. In order to help Ukraine build up their capacity to gradually harmonise their standardisation system with European best practice the ITS has, in close cooperation with the Ukrainian TEG Standardization, developed Road map and Action plan on standardization establishing national priorities taken from the relevant lists of the Energy Community Secretariat for the adoption of international and European electricity and gas standards for effective cooperation with the EU. This report summarizes the efforts made and results achieved of the approximation of the technical regulatory system of Ukraine to that of the EU in The report divides the harmonisation efforts related to standardisation into an institutional building part comprising the establishment of an NSB, its relationship with international and European FSOs, the establishment of national Technical Committees capable of following the work of international and European Technical Committees, and a technical part, comprising adoption of a package of international and European standards allowing to remove effectively the existing barriers to trade between the energy markets of the PCs and the EU. The report also refers to a number of regional events organised and their importance in enhancing the knowledge of harmonisation techniques and practices required to approximate the system of Ukraine to that of international and European best practice. 1. Introduction INOGATE is one of the longest running energy-related technical assistance programmes funded by the European Union. It started in 1996 and works within the policy frameworks of the Baku Initiative and the Eastern Partnership. INOGATE cooperates with Ukraine to support a reduction in its dependency on fossil fuels and imports, improve the security of their energy supply and mitigate overall climate change. One of the main barriers to trade between the EU and Ukraine is the lack of mutually accepted standards, which significantly limits the prospects for beneficial cooperation. Till 2013 Ukraine were still operating a legacy standardisation system based on the former Soviet model of which most standards do not correspond with international or European standards. Ukraine has showed its readiness to generally approximate their national standardisation system to the European standardisation system, which will facilitate trade with the European Union. In order to assist Ukraine in adopting and implementing EU best practice in their standardisation systems, the INOGATE Technical Secretariat (ITS) prepared Road Map (RM) and Action Plan (AP) on harmonisation of standards and codes in the electricity and gas sectors for Ukraine targeted by this project that have signalled their willingness to cooperate. The RM and AP describe the standardisation system currently in place Ukraine, the changes required in order to harmonise it with 2

22 the European standardisation system and the actions needed to achieve this. The Road Maps and Action Plans aim to: identify the main factors hindering effective processes of adoption and implementation of international and European standards in Ukraine; provide a definition of the most important areas and objectives of activities which are necessary to ensure the harmonisation of gas and electricity standards to result in a reduction and subsequent elimination of the existing technical barriers to trade; recommend a set of steps to take in order to reduce the gap between standardisation systems and harmonise with European best practice. Identify, out of the standards proposed by the project, the priority gas and electric standards, and propose a timetable for their adoption The current Report on the results of work carried out in provides a general overview for Ukraine, summarising the state of play regarding adoption and implementation of European standards relevant to energy supply in the electricity and gas sector. It is based upon work which the INOGATE project team has carried out in the period between 2013 and 2014 in a close working dialogue with Ukrainian TEG Standardization. 3

23 2. Regional activities and results 2.1. Regional Seminar Aligning the standardisation systems with the EU standardisation system based on the New Approach Brussels, 29-30th January 2013 Content of the seminar The seminar was divided into two Round Tables, which covered the procedure of adoption of international and European standards by the cover page method or any other method that does not require translation into the national language; and National Technical Committees (and NSBs) and their participation in international, European and interstate Technical Committees. Ukraine got acquainted with the following presentations of the leading European experts: CEN and CENELEC Organisational description & functions, international and regional activities Eric Marchand, Programme Manager - International Cooperation, CCMC European and national standardisation: NSB case study example of BSI, Volodymyr Yakubov, Senior standardization expert Electrical Standards at International level (IEC) and at European level (CENELEC),Jean-Paul Bouard, Secretary of IEC/SC45A and CLC/TC45AX European Methodologies for the Harmonisation of Electricity Standards,Robert Jeanjean, Chairman of CENELEC TC 99 and TC 17A/C Marcogaz and DVGW lists of EN and ISO standards for the use by European Natural Gas infrastructure, Daniel Hec, Marcogaz Technical Association of the European Natural Gas Industry and Hiltrud Schülken, Director of International Cooperation in Gas, DVGW - German Technical and Scientific Association for Gas and Water / CEN TC 234 Secretary This seminar allowed Ukraine to develop targeted indicators for the development of the Road Maps and Action Plans on Harmonization Regional Seminar and Study Visit Development of Harmonization Road Maps and Action Plans, and Capacity Building recommendations London, 8-11th July 2013 Introduction In the framework of an ITS initiative experts from 9 PCs participated in a regional seminar and study visit with the general objective to introduce international and European standards in the INOGATE PCs and create conditions for their sustainable application and utilisation, requiring a study of the standardisation systems in the PCs, identification of possible gaps in approximation of European best practice and development of Road Maps and Action Plans. Content of seminar and study visit 4

24 The seminar was divided into 6 sessions addressing Results - the definition and determination of regional and national priority electricity and gas standards, - the review of standardisation and technical legislative systems; - the development of Road Maps and Action Plans by the TEG in close cooperation with the PCs; and - the presentation of BSI as case study for a European type of NSB. As a result of the discussions, it was concluded that for the harmonisation of electricity standards it will be necessary, to actualise the list of generally applicable standards of the Energy Community Secretariat, identify priority standards, find a solution for normative references and investigate the possibility for adoption without translation into the national language. It was also recommended that PCs should establish official relationships with the right holders of the priority standards identified. Overall, participants have gained an understanding of the considerations underlying identification and choice of priority electricity and gas standards to achieve the objectives of the INOGATE project and an initial perception of the role and content of the Road Maps and Action Plans and the guidance these will provide. Getting acquainted with the layout and equipment of the testing facilities visited and the type of tests that can be performed at the facilities visited was important to support PCs getting an impression of how and in which way they can update their infrastructure for certification and testing of products in the framework of the Energy Community Acquis of regulations and related standards Ukraine got practical results as follows: official transfer procedure for transfer of 112 oil and gas standards that was coordinated with the IGU Bureau of Standards; The proposed method of adoption of standards by the reprint method with the reference annex as a translated version into Russian Regional Study Visit Gas Transmission Aspects Bonn and Essen, 9-11th April 2014 Introduction In the framework of an ITS initiative, experts from ten PCs participated in a regional seminar and study visit to Germany with the objective to share knowledge and get acquainted with best practice in the field of gas transmission. To that purpose, visits were planned to three organisations active in 5

25 different fields of gas transmission, the German Technical and Scientific Association for Gas and Water (DVGW) in the city of Bonn, a body under private law established to support industry by developing and publishing codes of practice as an SSO 1, which can be used in the production, transportation, distribution and use of energy and potable water, the Open Grid Office in the city of Essen, an independent transmission system operator originally established as a subsidiary of the German E.ON gas supply company in 2004, which has evolved into Germany's leading natural gas transporter, and the German Institute of Gas and Heating (GWI) also in the city of Essen, a research and development institute under private law dealing with appliance technology and fuel engineering, industrial engineering and combustion technology, operating an accredited testing laboratory. DVGW, Open Grid Office and GWI work in close cooperation with each other. Content of the study visit The study visit consisted of three days of presentations, from both the hosts and the participants. The first day was hosted by DVGW at its Head Office in the city of Bonn. At DVGW participants were introduced for the first time to international and European functional (safety) standards for transmission pipelines as part of a coherent system of formal standards supported by DVGW codes of practice. It was clarified in which way DVGW codes have laid the foundations for technical selfregulation by the German gas and water industry by aiming at ensuring safety of gas and water supply at highest international level resulting in the establishment of a gas network safety system based on European functional safety standards supported by DVGW codes of practice. Experts from Ukraine and Belarus availed themselves of the opportunity to highlight experiences with the introduction and use of international and European standards into their national regulatory systems. Experts from Georgia, Azerbaijan, Moldova, Kyrgyzstan, Tajikistan and Uzbekistan presented development and construction aspects of their gas transportation systems. The second day was hosted by Open Grid Office at their premises in the city of Essen, and mainly dedicated to the relationship of DVGW codes of practice to standards developed by FSOs (such as ENs developed by a regional standardisation organisation like CEN and published by an NSB) and to practical application aspects in the field of gas transmission. PCs were offered the opportunity to present and discuss aspects of gas transmission, such as the role and influence of national technical regulations. The third day took place at the premises of GWI in the city of Essen. Participants were informed about the importance of research and development of gas transmission systems. The meeting was concluded with a visit to the testing facilities of GWI and a demonstration of specific gas transmission hazards by way of controlled gas explosions. Results 1 Specialised Standardisation Organisation (SSO) generally refers to the thousands of industry- or sector-based standards organisations that develop and publish industry specific standards, such as codes of practice. 6

26 The event has contributed considerably to enhancing the knowledge and understanding of the PCs by providing a useful insight in the way a country as Germany, with a long history in the field of transportation of combustible fluids, and in a wider perspective the EU, is dealing with design, construction, safety and environmental aspects of gas transmission systems. Internationally and also among the PCs the German approach is considered best practice, based on 100 years of gas transmission networks operation without major accidents. The German system is considered as a light system, in the spirit of laying down only essential requirements in technical regulations and leave it to the expertise of economic operators (and the standards initiated by them) how to best translate these requirements into state-of-the-art solutions. The major impact of the event has proved to be the recognition of the value and following adoption by the majority of PCs of the self-regulation principles as laid down in EU Directives, ENs and related codes of practice and subsequent modernisation of their regulatory systems in the gas sector in line with European best practice. 3. Results of development and implementation of the Road Maps and Action Plans in Ukraine Ukraine signed in 2014 an Association Agreement with the EU introducing a Deep and Comprehensive Free Trade Area (DCFTA). Already in 2010 Ukraine became signatory to the Energy Community Treaty. Part of the Association Agreement is the adoption and implementation of about 350 EU Directives and Regulations, together with related ENs, and implementation of the Energy Community Acquis, involving the adoption of 13 EU Directives and Regulations together with a package of international and European electricity and gas standards as national standards. Of the Energy Community Acquis Ukraine has implemented modified versions of 5 EU Directives, in the fields of pressure equipment, simple pressure vessels, gas appliances, measuring instruments and explosive atmospheres, and 4 full compliant versions of EU Directives, in the fields of machinery, low voltage equipment, EMC, and energy labelling. Ukraine has adopted part of the ENs supporting these EU Directives. Ukraine has completed to date: - the establishment of an independent National Standardisation Body and informing ISO and EASC thereof; - the implementation of 12 EASC interstate gas standards transferred by the ITS project; - ITS project transfer and translation of 100 international and European oil and gas standards; - the implementation of the 2014 National Standardisation Plan with regard to the adoption of generally accepted electricity standards from the list of the Energy Community Secretariat; - the implementation of the 2014 National Standardisation Plan with regard to the adoption of priority gas standards from the list of the Energy Community Secretariat; - the approval and implementation of the 2015 National Standardisation Plan with regard to the adoption of generally accepted gas standards from the list of the Energy Community Secretariat; Adoption and implementation of standards 7

27 In the end of 2012, Ukraine adopted 39 gas standards out of those proposed by the project. 7 standards were adopted in After receiving 100 translations of oil and gas standards, the process was accelerated. In 2014, 19 standards were adopted, and 15 standards were adopted for the first time. 14 of these standards were translated with the help of the Project. Ukrtransgaz received from the National Standards Body 34 translations that were introduced in the enterprise information system. In the end of 2012, Ukraine adopted 95 electrical standards of those proposed by the project. In 2013, due to the protracted standardization system reform, the electricity standards were not adopted in Ukraine. 23 standards were adopted in 2014, out of them 21 standards were adopted for the first time. In 2015, Ukraine was planning to move to a large-scale adoption and implementation of the gas and electricity standards in accordance with the Program of the Cabinet Activity 695 dated and Verkhovna Rada Decision 26 VIII dated Conclusion The main purpose of using harmonised standards is to remove technical barriers to trade. This applies to the energy sector as well and in particular for Ukraine this sets the scene for further modernisation of their respective electricity and gas infrastructure and to increase competitiveness. Component B Electricity and Gas of the INOGATE Technical Secretariat (ITS) and Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objective has helped Ukraine building up their capacity to gradually harmonise their standardisation system with that of European best practice by elaborating standardisation Road map and Action plan. The resulting actions by Ukraine of transposing and adopting the required packages of international and European priority electricity and gas standards. In 2015, Ukraine has passed, with the help of the Project, to implementation of gas standards in the oil and gas sector companies. As a pilot project, the European functional standards are selected for the gas pipelines with MOP over 16 bar, which will be adopted in the last editions before the end of Implementation will begin in 2017, together with the necessary associated standards. 8

28 3.2 Annex 2 Minutes of the Small Steering Committee meeting for INOGATE Project Implementation for group 2 "Harmonisation of standards and codes in the electricity and gas sector" 1

29 2

30 3

31 4

32 5

33 6

34 3.3 Annex 3. Working Group Composition for the examination of standards planned to be introduced in Ukraine in the framework of the INOGATE project during

35 8

36 9

37 APPROVED BY: Vice President - Chief Engineer PJSC UKRTRANSGAZ I.Z Burak 10

38 Working Group Composition for examination of standards planned to be introduced in Ukraine in the framework of the INOGATE project during 2016 Title of Standard 1 EN 12186:2014 Gas infrastructure Gas pressure regulating stations for transmission and distribution Functional requirements Members of the Working Group for standards examination On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Barnetsky I.B. - Deputy Head of Department - Head of GDS Operation Unit; Kliun A.M. Deputy Head of Scientific and Technical Division; Tabak S.M. Leading Engineer of the GDS Operation Unit 2 EN 12327:2012 Gas Infrastructure Pressure testing, commissioning and decommissioning procedures Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Banakhevych Yu.V. Head of LSGTP (linear section of gas transmission pipeline) Operation Unit; Kliun A.M. Deputy Head of Scientific and Technical Division; Babelsky R.M. Deputy Head of LSGTP Unit On behalf of the branch of Scientific-Production Center Techdiagaz Kasian G.G. Head of Analytical Unit of Technical Diagnostics of Main Gas Pipelines Facilities 3 EN 12583:2014 Gas Infrastructure Compressor stations Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Tereshchenko R.V. Head of Division for Maintenance and Reconstruction of Gas- Compressor Stations; Vasylchuk A.A. Head of Unit for Maintenance and Reconstruction of Gas- Compressor Stations Kliun A.M. Deputy Head of Scientific and Technical Division; On behalf of o the branch of SPC Techdiagaz: Kryviak V.M. Head of Unit for Technical Diagnostics of Gas Compressor Stations Facilities 4 EN 12732:2013+A1:2014 Gas Infrastructure Welding steel pipework Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: 11

39 Andriyiv O.D. Deputy Director of Gas Trasportation Department; Shcherbak O.V. Chief Welder; Orlov I.O. Head of Scientific and Technological Division; Kliun A.M. Deputy Head of Scientific and Technical Division; On behalf of o the branch of SPC Techdiagaz: Filatov S.P. Head of Technical Diagnostics Unit of Main Gas Pipelines and GDS; 5 EN 1594:2013 Gas infrastructure Pipelines for maximum operating pressure over 16 bar Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Banakhevych Yu.V. Head of LSGTP (linear section of gas transmission pipeline) Operation Unit; Kliun A.M. Deputy Head of Scientific and Technical Division; Babelsky R.M. Deputy Head of LSGTP Unit Bilychenko A. Yu. - Head of Unit for Operation and Diagnostics of Corrosion Prevention Means. On behalf of o the branch of SPC Techdiagaz: Okhrіmchuk S.O. Chief Engineer 6 EN 16348:2013 Gas infrastructure Safety Management System (SMS) for gas transmission infrastructure and Pipeline Integrity Management System (PIMS) for gas transmission pipelines Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Maksymchuk B.M. Director of Gas Transportation Department; Andriyiv O.D. Deputy Director of Gas Trasportation Department; Tereshchenko R.V. Head of Division for Maintenance and Reconstruction of Gas- Compressor Stations Orlov I.O. Head of Scientific and Technological Division; Kliun A.M. Deputy Head of Scientific and Technical Division; On behalf of the branch of SPC Techdiagaz: Okhrіmchuk S.O. Chief Engineer On behalf of the branch of the Institute of Gas Transport Kostanyan V.R. Head of Unit of the Sector for the Development of regulatory documents 7 EN 1776:2015 Gas infrastructure Gas measuring systems Functional requirements On behalf of NJSC Nafrogaz of Ukraine: Khomyk P.M. - Head of Scientific and Technical Policy Division; Trusova M.V. - Deputy Head of Scientific and Technical Policy and Standardisation Unit On behalf of PJSC Ukrtransgaz: Bolkhovitin M.I. Head of Gas Measurement and Metrology Division; Kliun A.M. Deputy Head of Scientific and Technical Division; Dubas P.P. Deputy Head of GDS Operation Unit 12

40 Director of Gas Transportation Department B.M.Maksymchuk Director of Underground Gas Storage Department R.Ya. Shimko Head of Scientific and Technical Policy Division of NJSC Nafrogaz of Ukraine P.M. Khomyk 13

41 3.4 Annex 4. Minutes 2 of the meeting of the small steering committee as regard to implementation of the INOGATE project under Subcomponent 2 Harmonisation of electricity and gas standards and codes.. 1

42 Kyiv, PJSC "UKRGAZTRANS", January 11, 2016 Unofficial translation 2

43 MINUTES 2 of the meeting of the small steering committee as regard to implementation of the INOGATE project under Group 2 Harmonisation of electricity and gas standards and codes in Ukraine, (CWP.05.UA). PRESENT: National Standardisation Organisation of Ukraine (NSO): Vanifotova Larisa Leonidovna, Head of Standardisation Unit, NSO PJSC "UKRTRANSGAS": Shymko Roman Yaroslav, Director of UGS Department; Maksymchuk B. M., Director of Gas Transportation Department; Orlov Ihor Olehovych, Head of Scientific and Technical Division; Bolkhovitin М.І., Head of Gas Measurement and Metrology Division; Kliun Andriy Mykhailovych, Deputy Head of Scientific and Technical Division, Head of Standardisation and Quality Management Systems Unit. PJSC NJSC Naftogaz of Ukraine Khomyk Pavlo Mykolayovych, Head of Scientific and Technical Policy Division; Trusova Maria Vasylivna, Deputy Head of Scientific and Technical Policy and Standardisation Unit. INOGATE Technical Secretariat Petrenko V. Ye., Standardisation senior expert (Electricity, gas) AGENDA 1. Establishment of Working Groups on expert review of standards, which are planned to be implemented in Ukraine under the INOGATE Project. 2. Discussion on functioning of Technical Committees on Standardisation TC 133 and TC Prospects of implementation and extension of the INOGATE project s period to introduce the international standards in Ukraine. 4. Other issues. Spoke: On the first item Shymko R. YA., Maksymchuk B.M., Kliun A. M. An analysis of international standards proposed to be implemented has been carried out. Each out of 7 standards planned has its specifics and that is why establishment of Working Groups is necessary to elaborate Russian translations of standards provided by the INOGATE project. Candidates to the Working Groups have been discussed. It is recommended to additionally include experts of SPC TEHDIAGAZ to the WGs. On the second item Vanifatova L.L., Kliun A.M. Information on functioning of Technical Committees on Standardisation TC 133, TC 146 is provided. It is mentioned that there is a need to urgently review and reapprove the Statute of Technical Committees and 3

44 renovate the individual and collective TC members. Without this work there are difficulties emerging in further implementation of international standards in Ukraine. There is also a need to carry on working with related committees, particularly TC 44, as regard to an opportunity of introduction of EN 12732:2013+A1:2014 (Gas infrastructure Welding steel pipeworks Functional Requirements) and TC 138. On the third item Khomyk P. M., Trusova M. V. They have mentioned that the project implementation period is too limited and during this period it is difficult to introduce all the standards required for the industry. Thus there is a need to initiate a new project to introduce the international standards in Ukraine having prepared the required requests. Decisions adopted. 1. The Secretary of the steering committee on project implementation shall elaborate and approve Composition of the Working Group on expert review of standards planned to be introduced in Ukraine under the INOGATE Project during The next meeting of the steering committee on project implementation shall be held on January 26, 2016 in the premises of the PJSC UKRTRANSGAZ. 3. The Science and Technical Division shall together with the branch Gas Transportation Institute shall prepare and submit the required documents to the UkrNDNTS for reapproval of the Statute of Technical Committees 133 and 146 and the composition of individual and collective TC members. Deputy Coordinator of the Small Steering Committee Project s senior expert Responsible Secretary P. M. Khomyk V. Ye. Petrenko А. М. Kiun 4

45 3.5 Annex 5. Seminar agenda 5

46 6

47 3.6 Annex 6.List of participants Seminar on implementation the European gas functional standards in Ukraine (CWP05. UA) 3 March Kyiv, Ukraine. A/A Mr./Mrs. Last name First name Position INOGATE Technical Secretariat 1 Mr. Twomey Andrian ITS Team Leader, Key Expert 2 Mr. Petrenko Viktor Standardisation Expert Electricity & Gas/Task Leader 3 Mr. Winnard Phil Senior Gas Standardization Expert 4 Ms. Timshina Svetlana Country Expert 5 Ms. Bekina Helen Junior Expert NAK NAFTOGAZ 6 Mr. Khomyk Pavlo Scientific and Technical Policy Department 7 Ms. Trusova Mariia Scientific and Technical Policy Department 8 Mr. Andrіievskyi Anatolii Scientific and Technical Policy Department 9 Mr. Stefaniuk Ihor Scientific and Technical Policy Department UKRTRANSGAZ 10 Mr. Shymko Roman Head of Underground Gas Storage DPT 11 Mr. Orlov Igor Head of R & D 12 Mr. Klyun Andrii Deputy Head of R & D 13 Ms. Vereshchak Alla Engineer R & D 14 Mr. Shcherbak Alexandr Lead Welder 15 Mr. Babelskyi Ruslan Deputy Head of MGL 16 Mr. Bilychenko Andrii Head of Corrosion Protection Section 17 Mr. Domashenko Valentyn Deputy Head Metrology DPT 18 Mr. Kasian Grygorii Head of Flow Detection Center 19 Mr. Buniak Yurii Head of Measurement Laboratory Ministry of Economic Development and Trade of Ukraine 20 Ms. Starikova Nataliia Deputy Head of Department of Technical Regulation National Standardization Body 21 Ms. Vanifatova Larisa Head of Unit 1

48 3.7 Annex 7. Answers on most important questions about the European gas functional standards 2

49 3