Wednesday, 27 February 2013

Ukraine LNG terminal "difficult, and maybe prohibitively expensive"

At the Ukraine Energy Forum this week, I argued that the proposed liquefied natural gas (LNG) regasification terminal on Ukraine’s Black Sea coast is “difficult, and maybe prohibitively expensive”. More effective methods of reducing Ukraine’s dependence on imported Russian gas include reverse-flow deliveries from central Europe, such as those recently made (in very small volumes so far) from Poland, and – above all – cutting gas consumption by energy saving and fuel switching, I argued.

I also commented on recent reports that Ukraine is talking to Turkmenistan about renewing direct gas purchases. Even if transport arrangements could be made, I suggested,  Turkmenistan will have no reason to sell gas to Ukraine at lower prices than Ukraine pays for Russian gas. Those nice people at Ukrainska Pravda reported my talk here (Ukrainian only).