Ukraine to announce tender for building LNG terminal in Jan
KYIV. Sept 7 (Interfax) - Ukrainian Energy and Coal Industry Minister Yuriy Boiko has said that a tender to construct a liquefied natural gas terminal will be announced in early 2012.
"The selection of companies that will develop a feasibility study for the terminal's construction is being wrapped up, and from January 1, 2012 a tender will be announced for the terminal's construction," Boiko said at a press conference on Wednesday. The construction will take a year and a half, he added.
"And our commitments to purchase gas from our partners will come into force in this period. We have been in talks on oil and gas with Azerbaijan since last summer. We have signed a memorandum. We are pumping Azeri oil through the Odessa-Brody oil pipeline, and we have to buy about five billion cubic meters of gas from Azerbaijan," the energy minister said.
The final cost of the project will be known after a feasibility study was been drawn up. Preliminary estimates are that the construction of the terminal itself will take from $750 million to $1 billion, building infrastructure - from $170 million to $360 million, and hooking up to the country's gas-transport system - from $100 million to $460 million. The cost of building infrastructure and transport-system connection will depend on the site chosen for the terminal.