Ukraine commits to floating offshore gas storage

Offshore staff

KIEV, Ukraine – Excelerate Energy is to install a floating storage and regasification unit (FSRU) in the Ukrainian sector of the Black Sea, close to the port of Odessa.

This follows an agreement with Ukrainian state enterprise LNG Terminal National Project. The FSRU, due to become operational in 2014, will have a capacity of about 5 bcm/yr (177 bcf/yr) of gas.

Excelerate’s floating platform will represent the first stage of the LNG terminal project, with an onshore complex to be added later this decade providing further capacity of 10 bcm/yr (353 bcf/yr).

Installation of the FSRU in the Black Sea calls for preparatory excavation work with a cost estimated at $157 million; construction of a connection to a high-pressure gas pipeline, estimated at $147 million; and installation of the rented floating terminal.

Projected overall cost of the LNG terminal is $1 billion. It is expected to cut the price Ukraine currently pays for imported gas from Russia by 15-20%.

4/24/2013

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