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Azerbaijan, Ukraine to establish JV (UPDATE)

Oil&Gas Materials 19 September 2011 15:38
Azerbaijan and Ukraine will establish a joint venture to examine the project of supplying Azerbaijani liquefied gas to Ukraine, Minister of Industry and Energy Natiq Aliyev told media.
Azerbaijan, Ukraine to establish JV (UPDATE)

The details were added (the first version was posted at 2:36 p.m.)

Azerbaijan, Baku, Sept. 19 / Trend E. Ismayilov /

Azerbaijan and Ukraine will establish a joint venture to examine the project of supplying Azerbaijani liquefied gas to Ukraine, Minister of Industry and Energy Natiq Aliyev told media.

The Ukrainian side proposes to consider supplying 2-5 billion cubic meters of gas.

These volumes will be taken as the basis while preparing a feasibility study.
Azerbaijani Industry and Energy Minister Natig Aliyev and Ukrainian Energy and Coal Industry Minister Yuriy Boyko have discussed cooperation in the energy sector in Baku today.

The situation with the hydrocarbon resources in connection with the discovered "Umid" and "Absheron" fields requires examining.

The adequacy of Azerbaijani reserves to ensure the country's commitments on gas supplies to Europe and Turkey should be also examined, Aliyev said.

Minister said that the Ukrainian side said that it plans to start constructing a gas decompression terminal next year. It will initially dilute gas supplied from Qatar through the Bosporus.

But, nevertheless, Ukraine seriously considers Azerbaijani liquefied gas supplies from the Georgian coast.

Supplies of liquefied Azerbaijani gas to Ukraine are possible within the project Azerbaijan-Georgia-Romanian Interconnector (AGRI), which envisages supplies of liquefied natural gas from Azerbaijan through Georgia and the Black Sea to Romania.
Ukraine may become another country - a potential customer, which can increase the effectiveness of the project, Aliyev said.

The capacity of the AGRI Project is considered in three variants - 2 billion cubic meters of gas per year, 5 billion cubic meters and 8 billion cubic meters. According to preliminary data, depending on the project capacity, its costs will vary from 1.2 billion to 4.5 billion euros.

The AGRI 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 via tankers to a terminal at the Romanian port of Constanta.

At present, Ukraine is working to create a terminal to receive liquefied natural gas, which is one of its priority national projects.

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