Agro Perspectiva

Price for gas supplied via LNG terminal will be less against Russian gas price for Ukraine - official

02.04.2012 10:17 "Agro Perspectiva" (Kyiv) — Price for gas for Ukrainian consumers, supplied via LNG terminal, will be lower against the Russian gas price. Chairman of the State Agency for Investments and National Projects Management Vladyslav Kaskiv said this last week answering journalists’ questions following the public presentation of the feasibility study of the national project LNG Terminal Friday in Kyiv, UKRINFORM reports. «We absolutely reasonably assert that a price for gas which will be supplied to the terminal for consumers — for NJSC Naftogaz of Ukraine, or any other consumers, will be less against a price, which we receive today according to the monopoly contract with Gazprom,» Kaskiv said. According to him, this conviction comes only from economic calculations. «This is pure economy,» Kaskiv says. He emphasized that a key factor is that Ukraine invites private companies for realization of this project. «And this is minus corruption, an increase of the range of partners and ensuring stability — this is simply the market, this is the economy, but the economy, which allows solving the key political task of Ukraine,» Kaskiv informed that LNG Terminal will not be a purchaser of gas. According to him, gas will be purchased either by NJSC Naftogaz of Ukraine or other purchasers on the market, which will independently conclude contracts. «This is the main idea, so that we ruined the monopoly, currently existing on the Ukrainian gas market, diversified suppliers and consumers, formed the whole system of direct contract relations and actually created the normal European market,» the State Agency Chairman noted. As the agency informed, according to the feasibility study of the LNG Terminal project construction, it is planned to be located in the vicinity of the city of Yuzhny on the Black Sea shore of Ukraine, by the oil terminal of OJSC Ukrtransnafta and the commercial seaport Yuzhny. The rated capacity of the terminal makes up 10 billion cu m a year. The construction cost is estimated at EUR 846 million. The terminal construction is planned in two stages. At the first stage, it is envisaged to construct one floating unit for regasification and gas storage with maximum capacity of 5 billion cu m a year, which will be constantly moored until completion of the LNG Terminal construction. At the second stage, it is planned to construct the shore terminal for receipt of LNG tankers, fit for unloading of large LNG tankers of 178,000 cu m capacity, with total storage volume of 540,000 cu m (three reservoirs with capacity reaching by 180,000 cu m each) and with supply capacity of 10 billion cu m a year.