Business news from Ukraine

EIGHT INTERNATIONAL COMPANIES SHOW INTEREST TO MANAGEMENT OF UKRAINIAN GAS TRANSPORT SYSTEM

Eight international companies have shown their interest to the management of the Ukrainian gas transport system (GTS), advisor to the Energy and Coal Industry Minister of Ukraine Maskym Beliavsky has said. “Today, a procedure for receiving and studying proposals from interested companies is underway. As of February 1, proposals were received from the eight global leading companies,” he said.
Beliavsky recalled that the deadline for accepting proposals from potential partners in managing the GTS of Ukraine was extended from February 1 to March 1, 2018. “With a view to more thoroughly studying the expectations and proposals of international partners, as well as the synchronization of this process with the progress of the creation of an independent operator of the gas transportation system, it was decided to extend the deadline for acceptance of the proposals until March 1, 2018,” he said.
As reported, along with Snam (Italy)/Eustream (Slovakia) and Gasunie (the Netherlands)/GRTgaz (France), with which the relevant memorandums were signed, a German group is also interested in the management of Ukraine’s gas transit system.

EBRD GIVES EUR 24.7 MLN LOAN TO ENERGOPARK YAVORIV TO BUILD SOLAR POWER PLANT IN UKRAINE

The European Bank for Reconstruction and Development (EBRD) and Energopark Yavoriv LLC have signed a loan agreement for construction of the first phase of a solar power plant for the amount of EUR 24.7 million. Energopark Yavoriv LLC Director Maskym Kozytsky told reporters that construction of the solar power plant will start in Yavoriv district of Lviv region in March 2018. Its capacity is 36 MW and the total cost of the project is EUR 34 million.
Energopark Yavoriv LLC is part of EcoOptima Group, which develops alternative energy in Lviv region. At present, two wind farms and four solar power plants have been built.

UKRTRANSGAZ SEEKS TO FINISH RECONSTRUCTION OF BAR COMPRESSOR STATION FOR EUR 80 MLN

Public joint-stock company Ukrtransgaz seeks to finish reconstruction of the Bar compressor station (Vinnytsia region) of the Soyuz gas pipeline being implemented jointly with German companies, Ukrtransgaz Chief Engineer Yuriy Ziabchenko has said. He said that after the approval of the blueprints by the government the company will carry out all the required works in 18 or 18 and a half months. Some 60% of the equipment required for reconstruction has been shipped.
The projected cost of construction is around EUR 80, including EUR 53.6 million of a loan provided by Deutsche Bank and EUR 26 million of Ukrtransgaz’s own funds. Ferrostaаl Industrieanlagen is the general contractor of the project.
As part of the reconstruction of the Bar compressor station, the company plans to replace two gas-pumping units (GPU) with modern production facilities made by General Electric, install a new fuel gas preparation unit, automatic control systems and generate compressed air with a receiver, and reconstruct fire safety, ventilation and heating systems.
As a result, the GPU efficiency will increase from 25% to 36%. The annual fuel gas saving will be 76 million cubic meters. The project payback is nine years based on 25 years of operation.
In general, two of seven GPUs of the Bar compressor station will be replaced, two will be used as backup, another three will be decommissioned.
During the visit to the site, Naftohaz Ukrainy CEO Andriy Kobolev said that cooperation with international companies in the modernization of the Bar compressor station is a key component for successful work in the oil and gas sector and improving efficiency. Therefore, Ukraine intends to expand cooperation, attract European companies to manage the country’s gas transport system, signing contracts for the transportation of gas not only with Gazprom.

UKRAINE BOOSTS COAL IMPORTS 80% AND OIL IMPORTS 36.9%, IN JAN 2018

Ukraine imported 73,933 tonnes of crude oil (according to foreign economic activity code 2709 – petrol, diesel fuel, fuel oil, jet fuel, etc.) worth $38.515 million in January 2018, respectively 36.9% and 57.3% more than in January 2017, the State Fiscal Service has reported.
Ukraine imported oil worth $36.174 million from Azerbaijan, $1.844 million from Iran, $277,000 from Russia and $221,000 from other countries. Ukraine did not export any oil in the period. As reported, Ukraine imported 5.826 million tonnes of oil worth $4.384 billion in 2011, 1.544 million tonnes worth $1.233 billion in 2012, 761,000 tonnes worth $630 million in 2013, 178,000 tonnes worth $147 million in 2014, 248,000 tonnes worth $89 million in 2015, 516,000 tonnes worth $174 million in 2016 and 1.013 million tonnes worth $442 million in 2017. Ukraine imported 570,685 tonnes of petroleum products (foreign economic code 2710 – petrol, diesel fuel, fuel oil, jet fuel, etc.) in January 2018, 0.9% more year-on-year, for a total of $344.072 million, 22.1% more. Russia supplied petroleum products worth $146.006 million (42.43% of the total), Belarus some $130.958 million (38.06%), Lithuania some $37.032 million (10.76%) and other countries $30.075 million (8.74%).
Ukraine exported 25,876 tonnes of petroleum products worth $14.981 million in January, of which $3.694 million to Latvia, $3.669 million to Lithuania, $2.451 million to Greece and $5.167 million to other countries. Ukraine imported petroleum products worth $6.954 billion and exported $3.339 billion in 2011, $7.607 billion and $1.389 billion respectively in 2012, $6.418 billion and $811 million in 2013, $6.698 billion and $511 million in 2014, $3.857 billion and $116 million in 2015, $3.267 billion and $87 million in 2016 and $4.159 billion and $181 million in 2017.
Imports of coal (foreign economic code 2701) rose to 2.250 million tonnes in January 2018, an 80% year-on-year increase, worth $281.161 million, 64.5% more.
Ukraine imported coal (including anthracite) worth $170.579 million from Russia (60.67% of the total), $91.017 million from the United States (32.37%), $13.1 million from Canada (4.66%) and $6.465 million from other companies (2.3%).
Ukraine exported 43,316 tonnes of coal worth $7.798 million in January, including $4.597 million to Russia and $3.201 million to Slovakia.
Ukraine imported coal worth $2.761 billion and exported coal worth $775 million in 2011, respectively $2.637 billion and $609 million in 2012, $1.974 billion and $737 million in 2013, $1.773 billion and $521 million in 2014, $1.632 billion and $54 million in 2015, $1.467 billion and $45 million in 2016 and $2.744 billion and $105 million in 2017.

KYIV INTERNATIONAL AIRPORT INCREASES PASSENGER FLOW IN JAN, 2018

The Kyiv international airport (Zhuliany) serviced 155,500 passengers in January 2018, which is 43.8% up than in January 2017.
The press service of the airport reported that the number of passengers serviced on international flights totaled 149,600 and on domestic flights – 5,900.
The number of flights in January 2018 accounted for 1,876 (departures and arrivals), which is 19.3% more than a year ago, including 1,552 international flights and 324 domestic flights.
The most popular international routes in January 2018 were Dubai (the UAE), Minsk (Belarus), Ankara (Turkey), Budapest (Hungary), Warsaw (Poland), Memmingen (Germany), Rome (Italy) and domestic flights – Odesa, Zaporizhia and Lviv.