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Ukraine to Build LNG Terminal at Port Yuzhnyi, Kaskiv Says

Ukraine will build an 846 million-euro ($1.13 billion) liquefied natural gas terminal at the port of Yuzhnyi, said Vladyslav Kaskiv, the head of state national projects.

As much as 70 percent of the cost will come from borrowing, Kaskiv told reporters in Kiev today, adding that 513 million euros will be raised by bond issues or from a loan.

The government will set up a managing company with a private investor within two months, Kaskiv said. Direct financing from the Ukrainian government will total 55 million euros, he said.

The terminal will be completed in two stages, and capacity will double to 10 billion cubic meters by 2018 from a planned 5 billion cubic meters in 2016, he said. Total construction time will be 49 months, he said.

Another 113 million euros will be needed to build a pipeline link to carry the fuel from the terminal to consumers, according to Kaskiv.

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