Cabinet approves EUR 846 mln LNG terminal plan, seeks partners

The Ukrainian government approved a plan for the construction of a liquid natural gas (LNG) terminal on the Black Sea with 10bcm in annual throughput capacity, at a total project cost of EUR 846 mln. A temporary 5bcm LNG unit will start operating in 2016, with the full-capacity terminal slated for 2018 completion. The government will retain a 25% stake in the terminal and plans to announce a tender for partners in the project. An official revealed that over 10 potential investors have expressed interest.

Alexander Paraschiy: The plan’s approval is Ukraine’s first concrete step towards diversifying its natural gas imports, but its economic viability looks uncertain given the extended project period. At this early stage the announcement looks to us like nothing more than a pre-election move by the government. We look forward to a formal tender announcement.