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There is sufficient natural gas in the underground storage of Naftogaz Ukraine to ensure that the Ukraine’s gas transportation system (GTS) can pump it to the EU countries for supplying consumers during the autumn-winter period, the Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
According to Naftogaz Ukraine deputy chief Vadim Chuprun, Ukraine has accumulated about 17.6 billion cubic meters of natural gas in underground storage facilities (including UGS Glebovskoye, located in the Crimea).
Natural gas storage will continue. The volume of gas stored will depend on the temperature conditions and demand from Europe.
According to Naftogaz, now the daily volume of gas injection is about 50 million cubic meters of gas. This is amount is required to meet the growing demand for natural gas in EU countries.
Given the strategic importance of Ukraine’s GTS infrastrucure for Europe’s energy security, government plans to implement a set of measures to build a gas hub on the GTS base, which will play a key role in ensuring the stable operation of the European energy market.
Experts say that on the EU border there is a unique system of underground storage facilities with a total active capacity over 31 billion cubic meters of gas. Plans to create a gas hub are in the interests Ukraine and EU countries, primarily in Eastern and Central Europe.
Prime Minister Mykola Azarov says he is convinced Ukraine has great potential to play an important role in Europe, due to its unique geopolitical location and significant hydrocarbon reserves.
Azarov has instructed the Vice Prime Minister of Ukraine Yuriy Boyko to prepare by November 2013 a concept for developing and modernizing Ukraine’s gas transportation system. The presentation of the document will be held on the eve of the summit in Vilnius, where Ukraine hopes to sign the EU Association Agreement.
EU Commissioner for Energy Günther Oettinger has said that in the coming years investments of international institutions will «breathe new life» into Ukraine’s aging gas transportation system.
Britain’s Mott MacDonald has said relatively inexpensive repairs will help maintain the Ukrainian gas transportation system in good working condition pending its full modernization. Reconstruction and modernization require of Naftogaz Ukraine to raise at least 4.8 billion USD in seven years.
Naftogaz Ukraine estimates the total cost of reconstruction of the Ukrainian GTS at 5.3 billion USD. Such investment will ensure the transit of gas to Europe in the amount of 145 billion cubic meters annually until 2030.