Azerbaijan, Ukraine to sign gas deal in Davos

Azerbaijan and Ukraine plan to sign a deal on the formation of a joint-stock venture for liquefied gas supplies at the World Economic Forum in Davos. The document will be signed by the Energy Ministers of the two states Natig Aliyev and Yuri Boyko.

Vestnik Kavkaza reported earlier that Azerbaijani President Ilham Aliyev and his Ukrainian counterpart Victor Yanukovych had negotiated energy cooperation during trilateral talks with Turkey.

The Ukrainian Cabinet approved the signing of the deal on purchases of Azerbaijani liquefied gas. The document was based on agreements reached by the presidents of Ukraine and Azerbaijan and the memorandum on liquefied gas supplies to Ukraine, signed on January 28, 2011.

The deal involves construction of a terminal for liquefied gas on the Ukrainian coast of the Black Sea. The sides have initialed two documents: one for construction of the LNG terminal and the other for establishment of a joint venture. Socoin (Spain) is the company doing feasibility studies for the terminal, it will conclude the process in the near future. The costs for realization of the project have dropped from $1.5 billion to $1 billion.

The LNG terminal is a facility for naval reception of liquefied gas. Ukraine will be able to diversify routes for gas supplies, receiving up to 10 billion cubic meters of gas annually.