Investment of $1.2 b in Ukraine's GTS modernization to save 1.5 bcm of gas per year, Boiko says

15:06

Investment of $1.2 billion in the modernization of the Ukrainian gas transportation system (GTS) will allow up to 1.5 billion cubic meters (bcm) of gas to be saved every year, Fuel and Energy Minister Yuriy Boiko has reported.

"We need to replace pipelines worth $300 million over three years, and another $800 million will be spent on replacing 60 gas pumping units and infrastructure. This will save up to one bcm of gas this year, and 500 million cubic meters of gas in 2011. As a result, we will burn not four but three bcm of gas bought from Russia to pump gas to Europe," he said in an interview with the Segodnya newspaper.

Boiko noted that Ukraine intends to attract $1.2 billion in credit funds with the support of the European Union to fund the existing plan of GTS reconstruction.

The fuel minister also said that Ukrainian state enterprises are to invest UAH 7 billion within five years to increase annual gas extraction on the shelf of the Azov and Black Seas from 1.2 billion to three billion cubic meters.