Azerbaijan, Ukraine sign agreement on oil and gas deliveries (PHOTO)
Photos added (first published at 16 59)
Azerbaijan, Baku, Jan. 28 / Trend /
The Ukrainian Cabinet of Ministers and the Azerbaijani government have today signed a memorandum on cooperation in organizing the LNG supplies to Ukraine. The document was signed following the meeting of Azerbaijani President Ilham Aliyev and his Ukrainian Counterpart Viktor Yanukovych, the official website of the Ukrainian president reported.
The two governments also signed an agreement on measures to promote cooperation in the field of oil transportation through the territory of Ukraine.
Ukrainskaya Pravda writes that Ukrainian Energy Minister Yuriy Boyko said that the contract envisages delivery of 2 billion cubic meters of liquefied gas in 2014, and 5 billion cubic meters of liquefied natural gas from Azerbaijan in 2015.
According to the minister, the second contract provides for delivery of Azerbaijani oil via Odessa-Brody pipeline in the direct mode. "This year it is planned to pump from 8 to 12 million tons," he said.
Delivery of liquefied Azerbaijani gas to Ukraine is possible within the project Azerbaijan-Georgia-Romanian Interconnector (AGRI), which involves the supply of liquefied gas from Azerbaijan via Georgia and the Black Sea to Romania.
The capacity of the AGRI Project is considered in three variants - two billion cubic meters of gas per year, five billion cubic meters and eight billion cubic meters. According to preliminary data, depending on the capacity of the project, the cost varies from 1.2 billion to 4.5 billion euros.
The project involves transporting Azerbaijani natural gas through pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal, and then will be shipped by tanker through the Black Sea.
Currently, Ukraine is working on creating a terminal to receive liquefied natural gas to Ukraine, which is among the priority national projects.
Signing contracts to supply LNG to the Ukrainian terminal is planned for the last three quarters of 2012 and first quarter of 2013. Construction work in the first phase of establishing terminal is planned to be completed by the end of 2015, starting from the second quarter of 2013.
Transportation of Azerbaijani oil through the territory of Ukraine can be carried out via Odessa-Brody oil pipeline.
The Odessa-Brody oil transportation project sought to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. Its trunk has a length of 674 kilometers, with a pipe diameter of 1,020 millimeters. The capacity of the pipeline and the terminal provided 9-14 million tons per year during the first stage.
Over the two years since the pipeline's construction, Ukraine unsuccessfully negotiated the transportation of Caspian oil in forward direction. As the country was unable to receive any concrete proposals from companies, the Ukrainian government authorized the use of pipeline for transporting Russian oil in reverse direction in late June 2004.
Currently, a draft is developed to extend the transport corridor up to Poland. Sarmatia Joint Venture was established as part of constructing Odessa-Brody-Plock-Gdansk pipeline.
Sarmatia was created under an oil transportation project via the Odessa-Brody-Gdansk-Plotsk route. Sarmatia's participants include SOCAR, the Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn SA and Lithuanian AB Klaipedos Nafta.
Photo - The official website of the President of Azerbaijan