Ukraine plans to borrow $1 billion to buy gas, fuel oil for reserves

[Hindustani78]

KIEV Sat Feb 14, 2015 6:10am EST
Ukraine plans to borrow $1 billion to buy gas, fuel oil for reserves| Reuters

(Reuters) - Ukraine plans to borrow $1 billion to establish a strategic reserve of natural gas and fuel oil to cover local needs in emergency situations, Prime Minister Arseny Yatseniuk said on Saturday.

"The government has adopted a decision to establish reserves of gas and fuel oil worth $1 billion via borrowing under state guarantees," Yatseniuk told a government meeting.

"This $1 billion will be spent to buy this strategic reserve," he added, giving no details about gas origin.

Ukraine, a traditional buyer of Russian gas, has said it hopes to cut its dependence on energy supplies from Russia and to switch to imports from European states.

Ukrainian state-run energy firm Naftogaz said last month Kiev planned to cover up to 60 percent of its gas import needs this year from Europe, leaving its once-dominant supplier Russia delivering the rest.

The government has expected that European summer spot gas prices for Ukraine could fall to between $250 and $300 per 1,000 cubic meters and this allows Kiev to bolster its underground storage reserves.

Ukraine says it is buying Russian gas above market prices and is seeking alternative supplies from Europe. It bought Russian gas at $329 per 1,000 cubic meters in the first quarter of this year.

Relations between Kiev and Moscow are severely strained after nine months of conflict that has pitted Ukrainian government forces against pro-Russian separatists who have declared "people's republics" in eastern Ukraine.

(Reporting by Pavel Polityuk; Editing by Toby Chopra)

 

[metronome]

how are they going to pay back all of it ? the pre war IMF bailout conditions already had many austerity clauses that will further hurt the people, this banana republic of a confused ex soviet republic is becoming more unfeasible to land grab and absorb into the EU by the minute.

the US miscalculated badly on this one lol

 

[Hindustani78]

how are they going to pay back all of it ? the pre war IMF bailout conditions already had many austerity clauses that will further hurt the people, this banana republic of a confused ex soviet republic is becoming more unfeasible to land grab and absorb into the EU by the minute.

the US miscalculated badly on this one lol

Oil and gas investments do have large returns as its the basic requirement to live in Cold climatic countries. Ukraine is trying to be not dependable on Russian gas blackmails.

 

[metronome]

Oil and gas investments do have large returns as its the basic requirement to live in Cold climatic countries. Ukraine is trying to be not dependable on Russian gas blackmails.

Let's hope Hunter Biden and Natalie Jaresko can come up with a good plan

 

[Hindustani78]

Let's hope Hunter Biden and Natalie Jaresko can come up with a good plan

Ukrainian Establishment is trying to be not dependable on Russian gas blackmail since more than a decade.

14.02.2015
Ukrainian energy minister, Turkish ambassador discuss cooperation in nuclear energy, TANAP project

it seems Ukraine will be part of TANAP project .

 

[metronome]

Ukrainian Establishment is trying to be not dependable on Russian gas blackmail since more than a decade.

14.02.2015
Ukrainian energy minister, Turkish ambassador discuss cooperation in nuclear energy, TANAP project

it seems Ukraine will be part of TANAP project .

Hunter Biden and Natalie Jaresko will ensure everything goes smooth as silk

 

[Galad]

Ukraine is trying to be not dependable on Russian gas blackmails.

Ukraine refuse to pay for deliveries or steal the gas for other countries-Russia cut the gas.But according to Hindustani 78 this is blackmail... .Just one example for extreme theft done by USA-installed regime in Kiev - currency reserves are down to 6 billion from 30 ...and none has clear picture where all these money actually went.Or more like in which pockets vast majority of money went into.

 

[Hindustani78]

Ukraine refuse to pay for deliveries or steal the gas for other countries-Russia cut the gas.But according to Hindustani 78 this is blackmail... .Just one example for extreme theft done by USA-installed regime in Kiev - currency reserves are down to 6 billion from 30 ...and none has clear picture where all these money actually went.Or more like in which pockets vast majority of money went into.

Gas crisis issue started after Ukraine left CTSO and was trying to be neutral and was willing to join EU to uplift its economy. We cant deny that the war in Georgia in 2008 changed things on ground.

Russian Federation even used all sort pressure on the Ukranian weapons, space and industrial sector and this is the reason that Ukrainian reserves are down now and its currency gone too much down.

 

[Galad]

Gas crisis issue started after Ukraine left CTSO and was trying to be neutral and was willing to join EU to uplift its economy. We cant deny that the war in Georgia in 2008 changed things on ground.

Russian Federation even used all sort pressure on the Ukranian weapons, space and industrial sector and this is the reason that Ukrainian reserves are down now and its currency gone too much down.

Usual nonsense from you! Gas crisis started cause Ukraine has stolen gas for other countries and refuse to pay its own gas.No money-no deliveries.No free lunch in this world.After that the contract(which current Kiev regime has objections) was signed...by another Western darling -Y.Timoshenko(a common thief).And how joining EU will "uplift" the economy(which according to one of the ministers is practically dead)?By following so-called IMF "reforms"maybe?Just one of the many demands of IMF is 4-6 times higher gas prices.Another one is kicking out 230 thousands of doctors and teachers.A friendly advice for you-educate yourself of the matter how IMF is "helping"countries.A very good start is a book called "Concession of the economy hitman" by former IMF employee.
Ukraine is doing a great job at its own to destroy the manifacturing sector...according to EU demands.West corporations do not like competition at all.And manufacturing area of East Ukraine is in top 3 in the world by size and output.Even in occopied city of Mariupol Ukraine keep closing the plants.Another giant of manufacturing Yzmash -from December till March workers are on(unpaid) vacation.Cause of lack of orders,no money to repay debts,no money for salaries,no money to pay for deliveries.ZAZ is practically dead...while bus prodicing plant owned by Poroshenko working and making profit.It is quite good idea to educate yourself on the matter.Well alternatively you can stay at your current state-clueless and detached of reality on the ground.Your choice !

 

[Hindustani78]

Usual nonsense from you! Gas crisis started cause Ukraine has stolen gas for other countries and refuse to pay its own gas.No money-no deliveries.No free lunch in this world.After that the contract(which current Kiev regime has objections) was signed...by another Western darling -Y.Timoshenko(a common thief).And how joining EU will "uplift" the economy(which according to one of the ministers is practically dead)?By following so-called IMF "reforms"maybe?Just one of the many demands of IMF is 4-6 times higher gas prices.Another one is kicking out 230 thousands of doctors and teachers.A friendly advice for you-educate yourself of the matter how IMF is "helping"countries.A very good start is a book called "Concession of the economy hitman" by former IMF employee.
Ukraine is doing a great job at its own to destroy the manifacturing sector...according to EU demands.West corporations do not like competition at all.And manufacturing area of East Ukraine is in top 3 in the world by size and output.Even in occopied city of Mariupol Ukraine keep closing the plants.Another giant of manufacturing Yzmash -from December till March workers are on(unpaid) vacation.Cause of lack of orders,no money to repay debts,no money for salaries,no money to pay for deliveries.ZAZ is practically dead...while bus prodicing plant owned by Poroshenko working and making profit.It is quite good idea to educate yourself on the matter.Well alternatively you can stay at your current state-clueless and detached of reality on the ground.Your choice !

Where are you seeing nonesense from my part?

You just cant deny this that Russian Federation has used Gas deliveries to Ukraine as a card to restrict Ukrainian weapons and space sector in International market as Ukrainian weapon industries were like competitor and even other than this use gas crisis to force Ukraine sign Kharkiv pact even when Ukraine left the CTSO alliance after the Georgian war in 2008.

Ukrainian Establishment was seeing that without joining EU , it wont have open borders for its citizens to go into Western Europe. Russian nationals were pouring in Western Europe and even in United States and Canada as asylum seekers but it was not the same for the Ukrainians. the whole population was made dependable and even the tag of brothel was given to the Ukrainian Nation. Ukrainian Nation took a stand and moved towards EU and NATO and it found itself in a war like situation.

 

[Gazprom]

Ukraine refuse to pay for deliveries or steal the gas for other countries-Russia cut the gas.But according to Hindustani 78 this is blackmail... .Just one example for extreme theft done by USA-installed regime in Kiev - currency reserves are down to 6 billion from 30 ...and none has clear picture where all these money actually went.Or more like in which pockets vast majority of money went into.

This hindustani guy is not indian definitely,but a false flagger.

 

[Hindustani78]

This hindustani guy is not indian definitely,but a false flagger.

I am 100% REAL INDIAN. I just dont understand why there is always problem when Indians talks on International situation.

 

[Hindustani78]

BP acquires 12 percent stake in TANAP pipeline project - ENERGY
Friday,March 13 2015

Energy giant BP signed an agreement on March 13 to acquire a 12 percent stake in the Trans-Anatolian Natural Gas Pipeline Project (TANAP).

The agreement was inked in the Turkish capital Ankara by Turkish Energy Minister Taner Yıldız, State Oil Company of Azerbaijan (SOCAR) President Rovnag Abdullayev, Turkey’s Petroleum Pipeline Corporation (BOTAŞ) Deputy General Manager Mehmet Konuk, TANAP General Manager Saltuk Düzyol, and BP Azerbaijan President Gordon Birrell.

TANAP is part of the Southern Gas Corridor, which plans to carry natural gas sourced in Azerbaijan near the Caspian Sea to Europe through Turkey.

“TANAP has faced many political and economic obstacles throughout its development, however Turkey will always fully support the project,” Yıldız said, in his speech after the signing ceremony.

The decrease in oil prices will not affect the completion of the project, he added, stressing that Ankara has full confidence in the project’s partners, BP and SOCAR.

With the agreement, SOCAR will hold a 58 percent stake in TANAP, BOTAŞ will have a 30 percent stake and BP will have a 12 percent stake.

Yıldız also emphasized that TANAP will not be a rival to the planned gas pipeline between Russia and Turkey announced earlier this year, unofficially called “Turkish Stream.”

The initial capacity of TANAP is expected to be 16 billion cubic meters (bcm) of gas per year, gradually increasing to 31 bcm. Around 6 bcm of gas will be delivered to Turkey, and the remaining volume will be supplied to Europe. The gas will arrive in Turkey by 2018, and after the construction of the Trans Adriatic Pipeline (TAP) it will reach Europe by early 2020.

BOTAŞ Deputy General Manager Konuk said TANAP will meet a significant amount of the gas needs of Turkey and Europe when completed.

The groundbreaking ceremony of TANAP will take place later this month in the eastern province of Kars, with the participation of the presidents of Turkey and Azerbaijan, Yıldız announced on March 9.

“The ceremony will be held on March 17 in Kars at the level of presidents, barring a last minute cancelation,” Yıldız said.
March/13/2015

 

[Hindustani78]

http://aa.com.tr/en/economy/tanaps-construction-accelerates-costs-decrease/704443
TANAP's budget will save $3.2 billion with the help of low oil and commodity prices, says project's general manager

12.12.2016

ANKARA

The construction of the Trans Anatolian Natural Gas Pipeline (TANAP) project which plans to carry Azeri gas to Europe, is ahead of schedule and under budget by $3.2 billion, TANAP General Manager has said.



The TANAP project aims to bring natural gas, produced from Azerbaijan's Shah Deniz-2 gas field and other areas of the Caspian Sea, primarily to Turkey, but also on to Europe via the Trans-Adriatic Pipeline (TAP).

"More than half of the project, or 55 percent, of its construction was completed at the end of November and we are ahead of schedule," Saltuk Duzyol, TANAP's general manager told journalists at the project's construction field trip on Thursday.

He added that so far, the pipeline with 1,200 kilometers in length and with 56 inches in diameter, has been welded. In addition, a 1,570-kilometer-long area has been cleared and prepared for laying the pipeline.

"We will supply 2 billion cubic meters of natural gas by the end of June 2018 out of a total of 6 bcm to Turkey via TANAP. We will send another 2 bcm the next year followed by 2 more in 2020 as per Turkey's demand," Duzyol explained.

The TANAP starts on the Georgia-Turkey border at Ardahan city of Turkey from where it connects to the South Caucasus Pipeline (SCP) and ends at the Turkey-Greece border in the city of Edirne, where it feeds into the TAP Pipeline.

Duzyol also said the project consists of four phases, phase one starts from Ardahan, through to Kars, Erzurum and then onto Erzincan, Bayburt, Gumushane and Giresun. Phase two will extend to Sivas, and the third phase which will start from Yozgat city to Eskisehir city is 60 percent complete, 55 days ahead of schedule.

The last phase begins from Eskisehir and passes through Bilecik, Kutahya, Bursa, Balikesir, Canakkale, Tekirdag and Edirne until it ends at the Greek border in the Ipsala district of Edirne.

From June 2019, TANAP will deliver natural gas to Europe from the border of Turkey-Greece, Duzyol added.

The TANAP project is planned to be operational in 2018 with an initial capacity to carry 16 billion cubic meters (bcm) of Azeri gas through Georgia to Turkey. While 6 bcm will be for Turkey's domestic gas consumption, the rest is destined for transfer to Greece, Albania, and Italy and further into Europe.

Azeri energy giant State Oil Company of Azerbaijan (SOCAR) holds a 58 percent interest in TANAP, Turkey's BOTAS has a 30 percent share while BP owns a 12 percent stake.

TANAP will save $3.2 billion

Some of the most expensive items for pipeline projects are fuel and steel, which saw a decrease in costs as a result of low oil prices.

"The slump in global oil prices and low commodity prices also gives the TANAP project an opportunity to shrink its budget and save up to $3.2 billion, initially, the investment budget for TANAP was estimated at $11.7 billion," Duzyol said and added, "With the help of low oil prices, we reduced our budget to $8.5 billion."

Global crude oil prices decreased from their highest level of $115 per barrel in June 2014 to as low as $28 on Jan 18, 2016.

Currently Brent oil prices are fluctuating at around $55 per barrel after the OPEC and Non-OPEC countries aggree to lower their oil production.

With a projected budget of $8.5 billion, TANAP's total capacity is planned to increase to 23 bcm by 2023 and to 31 bcm by 2026.

 

[Hindustani78]

http://www.unian.info/economics/170...kraines-reserves-as-of-beginning-of-2017.html
02 January 2017

Ukraine has met the new year of 2017 with reserves of natural gas in its underground storage facilities in the amount of 11.993 billion cubic meters, RFE/RL reported citing the data by Ukraine’s gas transport system operator Ukrtransgaz.

Over more than two and a half months from the start of the heating season on October 13, gas reserves dropped by 2.739 billion cubic meters, or by 18.6%, reads the report.

Current reserves are 14.3% lower than in the same period last year, but 4.6% higher than those at the beginning of 2015.

Ukrainian Meteorological Center forecasts that the heating season in terms of temperature conditions will last between 160 and 180 days.


Naftogaz of Ukraine believes that gas reserves piled up in Ukraine’s underground storage facilities are insufficient for the safe passage of the heating season and declares that the company has at its disposal a technical potential for additional imports in the event of a severe winter. According to company estimates, by the end of the heating season, there will have been 7 - 8 bcm left in storage, with an accepted level of 5 bcm.

Naftogaz of Ukraine on December 31 reported that it had signed a loan agreement with Citi and Deutsche Bank. The agreement provides for a revolving credit line for the purchase of gas worth $500 million, guaranteed by the World Bank.

http://en.interfax.com.ua/news/economic/394518.html

The national JSC Naftogaz Ukrainy has signed with Citi and Deutsche Bank a loan agreement for a euro-denominated credit facility for gas purchase in the equivalent of $500 million secured by the World Bank.

The facility is secured by the World Bank's guarantee, which, in turn, is secured by the sovereign guarantee issued as part of the formation of the energy fund according to resolution No. 876 of the Cabinet of Ministers of Ukraine dated November 30 2016 on the provision of the International Bank for Reconstruction and Development with the sovereign guarantee under obligations of NJSC Naftogaz Ukrainy, the national gas company's press service reported.

The guarantee is valid for a term of four years, with two years available for gas purchase and two years for repayment. The guarantee of the World Bank and the credit facility are highly cost-effective compared to other loan agreements of Naftogaz. According to the funding conditions under the credit facility, Naftogaz will continue buying gas under existing eligible contracts, switching from pre-payment to post-payment terms.

The payments to suppliers will be secured by letters of credit issued by Citi and Deutsche Bank, which will convert into loans when payments are made. Naftogaz will repay those loans within twelve months upon the receipt. The World Bank guarantees the repayment of the loans to the international commercial banks.

Under this credit facility, Naftogaz will be able to purchase gas from both western and eastern directions. Decisions to do so will depend on the competitiveness of gas supply proposals.

"These funds will enable Naftogaz to ensure a stable gas supply to Ukrainian consumers during this winter," the company's press service quoted Naftogaz CEO Andriy Kobolev as saying.

In 2015, Naftogaz received a $300 million revolving loan from the European Bank for Reconstruction and Development to purchase gas from European suppliers, the company said.

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http://en.interfax.com.ua/news/economic/394577.html

Natural gas production in Ukraine in 2016, according to live data, increased by 0.7% (by 133.9 million cubic meters) compared with 2015, to 20.03 billion cubic meters, according to PJSC Ukrtransgaz.

In December 2016 gas production amounted to 1.75 billion cubic meters, which is 1.5% more than in the same month of 2015.

In December 2016, in particular, gas extraction by PJSC Ukrgazvydobuvannia amounted to 1.254 billion cubic meters, PJSC Ukrnafta 106.5 million cubic meters, other companies produced 389.6 million cubic meters.

Ukrtransgaz, 100% owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities in the country with a total capacity of 31 billion cubic meters.

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