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Ukraine Passes the Point of No Return on Energy Independence
PR Newswire KYIV, Ukraine, November 27, 2012
KYIV, Ukraine,November 27, 2012/PRNewswire/ --
Ukraine started the construction of the terminal for LNG regasification in Odesa region, southern Ukraine.In the meantime, the U.S.Excelerete EnergyL.P. will provide a mobile floating platform for receiving and processing of the liquefied natural gas during the construction of the ground terminal, according toInterfax Ukraine. The LNG terminal may subsequently cover from 30 to 50 percent ofUkraine's domestic demand for gas, stated the Ukrainian government officials.
The LNG Terminal project goes within the lines of Ukraine's acquiring energy independence from expensive Russian natural gas. "This is not just the LNG-term inal [which Ukraine will use to help maintain energy independence - Ed.], it is also planned to develop shale gas, the Black Sea shelf, increase domestic production and reverse gas supplies from Europe," commented the Head of the State Agency for Investment and Management of National Projects of Ukraine Vladyslav Kaskiv.
The capacity of the LNG-terminal will amount to 10 billion cubic meters of gas per year. When the project is finalized, Ukraine will pay at least 20 percent less for natural gas than it currently pays for Russian gas, said Kaskiv.
LNG Terminal project includes building of the regasification ground terminal (to be completed by 2018), as well as 65 kilometers of the pipeline (by 2015), connecting it to Ukraine's gas transporting system. Concurrently, the underwater channel toYuzhnyiport on the Black Sea will be deepened to allow for the delivery of the floating platform and an obstructed passage of LNG tankers.
Interestingly,LNG Terminalis, currently, creating a consortium of investors. The share of foreign investment in the project so far amounts to 90 percent, indicating the high level of attractiveness of the LNG terminal construction even in the context of the global economic crisis, stated Ukraine's Prime Minister Mykola Azarov at the opening ceremony.
Notably, inMay 2012, Ukrainian government was reported to negotiate an agreement withAzerbaijan regarding the supply of 10 to 15 billion cubic meters of Azeri gas per year through LNG terminal. In May it was also announced that Qatar was ready to sell liquefied natural gas toUkraine.
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