Excelerate Energy to Place FSRU in the Black Sea (Ukraine)
- Business & Finance
American LNG solutions company Excelerate Energy will place a floating storage and regasification unit (FSRU) in the Black Sea near the southern Ukrainian city of Odesa. Such is the outcome of the agreement signed between the company and the Ukrainian state enterprise LNG Terminal National Project, as reported by the official website of the State Agency for Investment and National Projects of Ukraine.
The FSRU is expected to become operational in 2014. The capacity of the unit will amount to 5 billion cubic meters, informs the state agency’s website. The significance of the project is that it allows Ukraine to find an LNG solution that can be launched earlier than an on-shore construction, according to the head of the State Agency for Investment and National Projects of Ukraine Vladyslav Kaskiv.
Excelerate Energy is one of the few companies in the world that possess the floating regasification technology, which makes the recently signed agreement a crucial element in streamlining the Ukrainian LNG terminal project.
The floating platform will become the first stage of the LNG terminal project. In addition, Ukraine still plans to create an on-shore part of the terminal, highlighted Kaskiv. The installation of an FSRU in the Black Sea waters involves preparatory excavation works worth EUR 121 million, building of the connection to the high pressure gas pipeline (estimated EUR 113 million), and installation of the rented floating terminal.
While the capacity of the floating platform will be 5 billion cubic meters per year, the annual capacity of the onshore terminal is set to reach 10 billion cubic meters of gas. The construction of the onshore part – stage two of the LNG terminal project – will take three to four years. Its planned launch date is 2018.
The LNG terminal project is aimed at increasing energy independence of the Eastern European country. The projected cost of the LNG terminal is USD 1 billion. According to the official national projects website, LNG terminal will help decrease imported gas price by 15-20 percent. Currently, Ukraine pays more than USD 400 per thousand cubic meters of imported Russian gas.
Press Release, April 24, 2013