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Ukraine Enhances Efforts to Diversify its Energy Sector

Diversification of energy sources, ensuring energy security as well as using alternative sources and boosting energy efficiency, are key to the new energy architecture of Ukraine. This was stated by the President of Ukraine Viktor Yanukovych at the World Economic Forum in Davos, Switzerland (January 25-29, 2012).

At the same time Ukraine's leader mentioned, that the country's integration into the European energy space would strengthen energy security of the entire region. Remaining a reliable partner in transferring hydrocarbons, Ukraine was also interested in cooperation to create new energy pipeline corridors, said the President. At the forum Ukraine was mentioned to possess rich potential for developing alternative and unconventional energy sources.

It was essential to continue the technical revolutions in extracting shale gas as well as implementing clean coal technologies, for the old technologies had lost their economic and ecological sustainability, according to Ukraine's Energy Minister Yuriy Boyko. Currently, Ukraine looks into implement the new environmentally conscious hydro-coal technology, which is claimed to enable utilities, refineries and industrial energy users to produce significantly cheaper and cleaner synthetic fuels from coal through enhance reactivity. Notably, in 2011 Ukraine produced 82 million tons of coal.

Speaking of energy sources diversification for Ukraine, the country is eyeing joint projects with Azerbaijan. After the recent round of negotiations, two protocols between the countries were ready to be signed, and the experts have already started their work on technical parameters of the documents. Moreover, Ukraine is currently negotiating a three-way partnership with Azerbaijan and Turkey. In his interview with journalists Ukrainian leader added that Ukraine would consider creating a gas transportation consortium and make such partnership profitable for all parties. The price of the project (reliable gas transportation to Europe and modernization of the pipelines) was estimated at USD 5-7 billions.

Ukraine is also dedicated to constructing of the LNG terminal with a general volume of 10 billion cubic meters on the Black Sea shore. The construction is planned to be completed by 2014. The project is supervised by the National Project LNG-terminal, a state owned company. On October 19-21, 2011, the Spanish company Socoin conducted a feasibility study of the marine LNG terminal in Ukraine.

SOURCE Worldwide News Ukraine