Last updated on April 25, 2014 at 5:24 EDT

Ukraine Advances in LNG Terminal Development

August 8, 2012

KYIV, Ukraine, August 9, 2012 /PRNewswire/ –

Today the Ukrainian government approved the feasibility study of the construction of
the LNG terminal, informed Ukrainian Energy and Coal Industry Minister Yuriy Boyko.
Technical development of the station will be finalized by December 2012, according to the
National Project LNG Terminal. The construction of the first line of the terminal will
begin in 2013. By 2015 the terminal will be able to process 5 billion cubic meters of gas
per year.

The LNG terminal will be built at the shore of the Black Sea in the Odesa oblast,
southern Ukraine. The final capacity of the terminal is projected to reach 10 billion
cubic meters of liquefied gas per year. Comparably, the volume of gas Ukraine imported in
January to July 2012 amounted to 19 billion cubic meters. The output capacity of the
existing Ukrainian gas transporting system, currently responsible for the transportation
of 70 percent of Russian gas to Europe, is 178.5 billion cubic meters per year, informs
Naftogaz of Ukraine.

The use of the new LNG terminal will decrease the price of imported gas by 15-20
percent, estimates the State Agency for Investment and National Projects of Ukraine.
Currently, Ukraine pays USD 426 per thousand cubic meters of Russian gas. The
billion-dollar project will pay off in five to seven years. Both the state and private
sector will have shares in the business.

In May 2012, the Ukrainian government was reported to negotiate an agreement with
Azerbaijan regarding the supply of 10 to 15 billion cubic meters of Azeri gas per year
through the LNG terminal. Moreover, the construction of the trans-Caspian pipeline – a
project Ukraine was ready to invest up to EUR 790 million into – is set to allow Ukraine
to transport tankers with liquefied natural gas from the Georgian Black Sea port Kulevi to
the Ukrainian LNG terminal.

In 2011, SOCOIN Ingeniería y Construcción Industrial, Spain, won the right to
produce the feasibility study of the LNG Terminal National Project. The construction of
the terminal will allow Ukraine to import gas from the countries of North Africa and the
Middle East, states Naftogaz of Ukraine. Ukrainian officials are also negotiating with
Algerian, American, and Qatari companies in order to obtain preliminary agreements on
possible gas supply once the LNG terminal in Ukraine becomes operational.

SOURCE Worldwide News Ukraine

Source: PR Newswire