The Cabinet of Ministers has endorsed the feasibility study for construction of a terminal for re-gasification of liquefied natural gas in Ukraine, Energy and Coal Industry Minister Yurii Boiko has told journalists upon the Government session on Wednesday.
He notes, the Cabinet has approved the LNG terminal feasibility study without material remarks.
State Agency for Investments and National Project Management Chairman Vladyslav Kaskiv says economic indicators, time schedules and organizational model have been approved.
As to Kaskiv, the State's share in this project is 25%, while in fact the State will pay only 7% of the project costs.
The National Project Agency head says the LNG terminal construction costs EUR 846 million.
He underlines, the making of this decision is of tremendous significance for the security of energy supply in the country and for subsequent realization of projects of such scale in Ukraine.
At the same time, Economic Development and Trade Minister Petro Poroshenko has told the press that the LNG terminal feasibility study was approved after being adjusted for the Ministry's remarks.
In his words, when endorsing the draft document Cabinet made alterations in it, concerning provision of sovereign guarantees for this project.
"We have specified the amount of sovereign guarantees, stated clearly that the Ukrainian Government must not spend budgetary means on provision of guarantees for the terminal, that the funds earmarked for the undersea channel only," he said.
As Ukrainian News earlier reported, on August 1 the Cabinet of Ministers postponed endorsement of the LNG terminal feasibility study seeing the remarks by the Ministry of Economic Development and Trade.
According to the feasibility study, developed by Socoin (Spain), the project can be implemented over a period of 49 months, and the first volumes of gas can be obtained in 2016.
A site near the Southern merchant seaport in Odesa region was selected as the optimum place for implementation of the project.
Project capacity of the terminal is 10 billion cubic meters of gas a year, the payback period is nine years.
The model for implementation of the project provides for a government stake of at least 25% in the project.
The recommended organizational model for construction of the terminal provides for establishment of a consortium with the participation of major players on the market of liquefied gas.
The terminal will be built in two phases, and it is to be commissioned in 2016.
Ukrainian News Agency
Copyright 2012 Ukrainian News Agency, distributed by Contify.com. All Rights Reserved.
(Originally published August 8, 2012, by Ukraine News Agency.)