Ukraine is interested in raising a loan from the European Bank for Reconstruction and Development to modernize the gas pipeline Urengoy-Uzhgorod-Pomary, the Prime Minister Mykola Azarov stated during the meeting with the EBRD delegation held in Kyiv, ForUm learned from the Cabinet’s spokesman.

"We would like to conclude an agreement on modernization and reconstruction of our gas pipeline Urengoy-Uzhgorod-Pomary, particularly in the part going to Poland," the head of government said.

He said that the government pays great attention to the energy conservation, energy efficiency and alternative energy sources issues.

Azarov recalled that Poland had agreed with Qatar on its financing the construction of LNG-terminal in Poland. The construction is to begin next year and in two years Poland is expected to get from 5 up to 10 billion cubic meters of Qatari liquefied natural gas. "Practically, they do not need so much, and we could take some of this gas for our own needs. We talked about this both with the Poles and with the leadership of Qatar," the Prime Minister said.

He stressed that currently Ukraine is buying Russian gas at the highest prices in Europe. So, of the highest importance for us is a search for alternative sources of hydrocarbons supply, as well as the implementation of energy efficiency projects and reduction of gas consumption. In particular, Ukraine has already transferred some of its thermal power station from gas to coal consumption. Thanks to these measures Ukraine has succeeded in reducing the consumption of Russian gas to 12 billion cubic meters this year.

According to Azarov, Ukraine is also considering purchasing of gas in Germany. "We are interested in alternative gas supplies from Germany. Can you imagine what a paradox is: it is cheaper for us to buy gas in Germany than in Russia," the Prime Minister said.

The Prime Minister informed that Ukraine has completed negotiations on receiving a loan to build the LNG-terminal on its territory and intends to build it in two years. In his turn, the First Vice President of the EBRD Varel Freeman said that the modernization of the gas pipeline Urengoy-Uzhgorod-Pomary is a very promising project in connection with the plans to build a terminal for receiving liquefied gas in Poland. "Ukraine needs more flexibility in the operation of the pipeline, and the cooperation with Poland would be very interesting, as Poland has plans to build the LNG-terminal. This project is an extremely important aspect of the energy conservation and efficiency," he stressed.


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