Caspian Report - Issue 06 - Winter 2014

ROMAN RUKOMEDA
52
develop a LNG terminal on the Black
Sea coast. Ukraine is planning to construct
a liquefied natural gas (LNG)
regasification terminal with annual
capacity of 10 bcm. However, it is not
expected to come online before 2018,
although Ukrainian officials are aiming
for 2015. The government has actively
courted Azerbaijan and Qatar
for long-term LNG supplies.
At the beginning of April 2013, Excelerate
Energy LLC launched the
preparation of engineering work for
the LNG Terminal National Project.
The service agreement was signed
on April 16 2013 in Houston, Texas
between the “LNG Terminal National
Project” State-owned Enterprise of
Ukraine and Excelerate Energy LLC,
a global market leader of FSRU.
The Agreement was the next step
after signing the Framework Agreement
on cooperation on November
26, 2012 during a formal ceremony
to launch the construction of LNG
terminal. The LNG Terminal National
Project anticipates that it will be possible
within the next year to install a
floating storage and regasification
unit (FSRU) in “Yuzhnuy” Port near
Odessa with a total capacity of 5
bcm. 10
In total, the system will cost approximately
1 billion USD. According to
the National Project’s leadership
team, if it is successfully integrated
into Ukraine’s domestic gas infrastructure
and can regularly receive
LNG deliveries, it could lower
Ukraine’s imported gas price by 15-
20%. Via the Ukrainian LNG Terminal
National Project, the Ukrainian
government has a 25% stake in the
endeavour and maintains that the
estimated investment payback period
is 8-9 years.
UKRAINE IS PLANNING TO CONSTRUCT A LIQUEFIED
NATURAL GAS (LNG) REGASIFICATION TERMINAL WITH
ANNUAL CAPACITY OF 10 BCM.
The LNG project will have two
phases. The first of these will be the
delivery of FSRU to Ukraine’s “Yuzhnuy”
port in 2014. The second stage
will include the construction of an
onshore terminal and storage facility
with the capability of receiving large
LNG tankers (178000 cubic meters).
According to information provided
by the Coordinating Council of the
Ukrainian LNG Terminal National
Project, it will be composed of three
180,000 cubic metres tanks, a total
LNG storage capacity of 540,000 m3,
doubling the capacity of the FSRU
alone, and a send-out capacity of
10 billion m3 per year (1,141,553
Nm3/h.) This phase will cost approximately
962 million USD, paid
for by an investor consortium and
scheduled for completion by 2018. 11
At the beginning of September 2013,
the Head of the State Agency for Investment
and National Projects of
10
. American company Excelerate Energy began preparation of engineering works for Ukrainian National project “LNG
Terminal” - http://www.ukrproject.gov.ua/en/news/american-company-excelerate-energy-began-preparation
-engineering-works-ukrainian-national-proje
11
. Ukrainian Gas Diversification: Shale And LNG Considerations http://www.eurasiareview.com/03092013-ukrainian-gasdiversification
-shale-and-lng-considerations-analysis/