Ukraine is holding talks on using credit funds from the China Development Bank to finance the construction of interconnection gas pipelines with Poland, chief adviser to Board Chairman of Naftogaz Ukrainy Serniy Alekseyenko has said.
“Naftogaz has several projects on the creation of additional interconnection gas pipelines to supply gas from European countries, and one of them recently received large state support – the project on the construction of the interconnection gas pipelines with Poland,” he said in an exclusive interview with Interfax-Ukraine.
He said that the project has more precise technical specifications and will ensure that supplies are transported the quickest way possible. It is the most effective expansion to existing gas infrastructure, he said.
Alekseyenko said that the first line of the interconnection pipeline with Poland will import up to 8 billion cubic meters (bcm) of gas per year, and the expansion of this capacity will boost supplies to 12 bcm.
He said that despite projects on expanding the gas supply capacity from Europe being realized by Naftogaz Ukrainy, an ideal imports structure has not yet been created. The structure should have its directions diversified, and the reliability of the infrastructure should be improved, he said.
He also said that the construction of the interconnection pipelines will unite the European gas transport system with underground storage facilities located in western Ukraine.
“This will give an opportunity for European companies to use our storage facilities to store gas which could be later sold not only in Ukraine, but also in Poland, Slovakia, Hungary, the Czech Republic and other European countries. This will also create a base for forming the Eastern-European gas hub on the basis of the Ukrainian gas transport system and underground storage facilities,” he said.
Alekseyenko said that the projected cost of the construction of the interconnection gas pipeline with Poland is estimated at $245 million.
