Interfax-Ukraine reported that consulting firm Mott MacDonald estimates the cost of modernizing Ukraine's gas transport system at USD 3.2 billion.
Around USD 2.8 billion will be needed for overhauling the country gas pipelines and another USD 400 million for modernizing underground storage facilities. This scenario involves the annual transporting of 110 billion cubic meters of gas with a maximum load on trunk pipelines of 140 billion cubic meters.
As reported, the deputy chief of Ukraine national oil and gas company Naftogaz Ukrainy, Mr Vadym Chuprun last week estimated the investment needed for reconstructing and modernizing priority gas-transport facilities at USD 5.3 billion.
Ukraine officially announced that modernization had commenced this summer. The first stage of the reconstruction of Ukraine gas-transport system will be the modernization of the Urengoi-Pomary Uzhgorod gas pipeline with the involvement of international financial organizations. The first phase of the modernization of the section of that pipeline in Ukraine is to take three years at a cost of USD 538.87 million including USD 230.87 million of Naftogaz Ukrainy own funds and USD 308 million in credit funds.
Ukraine Energy and Coal Industry Ministry put the needed investment at USD 6.5 billion in July last year. It is planned to find USD 2.4 billion for the modernization and reconstruction of the Soyuz gas pipeline, USD 1.3 billion for the Urengoi-Pomary-Uzhgorod pipeline, USD 1.5 billion for the Yeletz-Kremenchuk-Kryvy Rih-Izmail pipeline and USD 871 million for the Progress pipeline. These projects are to be carried in 2010-2018.
The modernization and reconstruction of the Bilche-Volytsko-Uhersk underground storage facility will require USD 223 million and that of the Bohorodchany facility will need USD 202 million. These projects will be carried out in 2010-2018 as well.
The period from 2010-2012 is to see the planned modernization of the compressor stations in Uzhgorod, Berehove, Tekovo and Orlivka which will require USD 95 million in investment.
(Source:www.steelguru.com )