Ukrainian PM says Russia will not get ownership of Ukrainian transit pipelines

Business & Economy July 31, 2014, 16:16

Yatsenyuk spoke at a meeting of the national parliament which was debating a government bill on changes in the management of the gas transportation system

KIEV, July 31./ITAR-TASS/. Ukrainian government and its US and EU partners plan to fully redesign the energy map of Europe and Russia will not get ownership of the Ukrainian transit gas pipelines network, Prime Minister Arseniy Yatsenyuk claimed Friday.

The government of Ukraine together with its American and European partners will redraw the energy map of Europe and the world, Arseniy Yatsenyuk said.

He said this would be done by modernising the Ukrainian gas transportation system.

Yatsenyuk spoke at a meeting of the national parliament which was debating a government bill on changes in the management of the gas transportation system.

In June, Ukraine asked the European Union and the United States to help to upgrade its gas transportation system and then operate it. Kiev put the cost of the project at $3-5.3 billion, which it said would secure gas transit to Europe in the amount of 145 billion cubic metres a year until 2030.

But Gazprom experts say that the modernisation of the Ukrainian gas transportation system can eventually cost $16 billion.

The throughput capacity of the Ukrainian gas transportation is 288 billion cubic metres system at the entrance and 178.5 billion cubic meters at the exit, including 142.5 billion cubic metres to European countries and 3.5 billion cubic metres to Moldova. Natural gas transit through Ukraine to Europe and CIS countries in 2011 increased by 5.7% from 2010 to 104,197,067,000 cubic metres, including to Western Europe by 5.9% to 101,098,013,000 cubic metres, but decreased by 2.4% to 3,099,054,000 cubic metres to CIS countries.

Ukraine’s gas transportation system consists of 72 compressor stations, 110 production facilities and 1,451 gas distribution stations. The overall length of gas pipelines operated by the company is 38,600 kilometres, including 22,200 kilometres of trunk pipelines and 16,400 kilometres of extensions.

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