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Ukraine’s delegation leaves for Spain to clarify row over LNG terminal

November 28, 2012, 16:18 UTC+3
Gas Natural Fenosa company announced that “it signed no treaty on investments into Ukraine’s LNG project and heads no consortiums to build a terminal”
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KIEV, November 28 (Itar-Tass) — Ukraine’s delegation has urgently left for Spain to clarify a row over Spain’s Gas Natural Fenosa related to the construction of a liquefied natural gas terminal in the Odessa region, local media reported on Wednesday with reference to a source in the government.

The delegation includes officials of the Foreign Ministry and the State Agency for Investment and National Projects.

Ukraine kicked off the project to build a LNG regasification facility on November 26.

Official sources in Kiev said then Ukraine’s LNG Terminal, a company within the State Agency for Investment and National Projects, and Spain’s Enagas S.A., a subsidiary of Gas Natural Fenosa, signed an agreement to create a consortium on the construction of a LNG terminal.

However, soon after Gas Natural Fenosa announced that “it signed no treaty on investments into Ukraine’s LNG project and heads no consortiums to build a terminal.”

The head of Ukraine’s Agency for Investment and National Projects, Vladislav Kaskiv, said “the emerging problem with the Spanish side is technical, but if under certain clear circumstances the company decided to withdraw from the project, we will understand its decision.”

Spain’s Gas Natural Fenosa said it did not know a person, who on behalf of the company signed the agreement with Ukraine to control the consortium on the construction of a LNG terminal estimated at 1.1 billion dollars.

The Ukrainian side insisted that the agreement had been signed.

Kaskiv said the agency “conducted the talks with Gas Natural Fenosa and its representative Jordi Sarda Bovehi acted as a negotiator.”

 

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