Ukraine starts building pipeline between LNG-Terminal and gas transport system
KYIV. Nov 26 (Interfax) - Ukrtransgaz, a subsidiary of Naftogaz Ukrainy, has started building a connection pipeline between a planned terminal for the regasification of liquefied natural gas (LNG) and the country's gas transportation system, an Interfax correspondent reported at the groundbreaking ceremony on Monday.
The cost of the connection pipeline's construction comes to 1.151 billion hryvni (around $144 million). The project will be financed with funds specified in Ukrtransgaz's tariff.
A gas pipeline at 1,000 mm in diameter covering 65 km (first stage - 42 km, and second - 23 km) will be built. Construction should be finished by 2015.
It was earlier reported that the construction of a LNG-terminal in Odessa will be implemented in two stages. The first stage (to launch in 2016) includes the development of a marine vessel terminal able to handle 5 billion cubic meters of gas a year. The second stage (to launch in 2018) includes the construction of a dryland terminal with capacity to handle 10 bcm a year.
The first stage includes dredging operations (with funds raised by GP LNG-Terminal under state guarantee, value of 121 million euro). In addition, the terminal will be connected with a high-pressure gas pipeline (using Ukrtransgaz's funds, under 113 million euro) along with a vessel terminal.
The second stage will be implemented using funds from an investor consortium (735 million euro).
The LNG-terminal will be built in the Yuzhny region next to OJSC Ukrtransnafta and MTP Yuzhny's oil terminal.