Ukraine has started modernization of its gas transport system (GTS)
with a reconstruction of the Urengoy-Pomary-Uzhgorod pipeline costing
$539 million, RIA Novosti reports.
Ukrainian Prime Minister Nikolai Azarov, Minister for Energy and Coal
Industry Yuri Boiko, representatives of Gazprom, E.ON Ruhrgas
(Germany), Gaz de France Suez (France), PGNiG (Poland), the European
Bank for Reconstruction and Development, the European Investment Bank
and the World Bank were at the ceremony marking the start of
modernization.
Ukraine invites Russia and the EU to join the process. Ukraine
transports about 80% of Russian gas to Europe. Ukraine may lose
transit potential with the realization of the Nord Stream and South
Stream pipeline projects.
Modernization of the Urengoy-Pomary-Uzhgorod pipeline will be
completed in 9 years, the first stage will take 3 years. $538.87
million has been invested, $230.87 of the sum from Ukraine and $308
million in the form of a loan that Kiev expects from the EBRD and the
EIB.