Azerbaijan, Baku, Dec. 20 / Trend E. Ismailov /
The preparation of a feasibility study for the construction of a terminal to receive liquefied natural gas (LNG) in the Ukraine will be completed in the third quarter of next year, according to a report on the presentation of the terminal, posted on the official website of the State Agency of Ukraine for National Projects.
According to information released by the Ukrainian media outlets the Ukraine established a state-owned enterprise for the construction of the terminal. Its task involves preparing a feasibility study and searching for investors for the project.
Plans to establish an international consortium in the third or fourth quarter of 2011 for the project are on the cards, according to information contained in its presentation. Work on the design of the terminal construction will happen in 2012.
Available information indicates the signing of contracts for the supply of LNG is scheduled for last three quarters of 2012 and the first quarter of 2013. The plan is to begin the first phase of construction of the terminal from the second quarter of 2013, and to complete it by late 2015.
The presentation notes show two options for funding the project. The first option is for the Ukraine to act as a majority shareholder, with the ability to purchase 51 and more percent. Should they opt to become a minority shareholder, the Ukraine's share may then range from 5 to 10 percent.
There are also indications in the presentation document that Azerbaijan, Egypt, Libya, Algeria and Qatar are considered as the LNG supply routes to the terminal. In terms of distance, the option of having Azerbaijan as a supply route is the shortest (2,300 km).
The supply of Azerbaijani gas to the Ukraine is possible within the Azerbaijan-Georgia-Romanian Interconnector (AGRI) project. It envisages the supply of Azerbaijani liquefied gas through Georgia and the Black Sea to Romania. The Ukrainians show great interest in this project.
The AGRI project considers three capacity volumes - 2 billion, 5 billion, and 8 billion cubic meters cubic meters of gas per year. According to preliminary data, the cost varies from 1.2 billion to 4.5 billion euros, depending on capacity.
Azerbaijan, Georgia, Romania and Hungary signed the Baku Declaration on the AGRI project on Sept. 14 in Baku.
The project envisages transporting Azerbaijani gas via pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal. The gas will then be delivered to a terminal at the Romanian port of Constanta via tankers.