This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Germany Helps Modernize Ukrainian Gas Transporting System

KYIV, Ukraine, December 12, 2012 /PRNewswire/ --

Ukraine starts the first joint project regarding the modernization of its gas transporting system. Renovation works at the compressor station Bar of the cross-country Soyuz pipeline will be financed through Deutsche Bank AG credit line. Ukrainian state company Ukrtransgas will receive EUR 53.5 million from the German bank.

The modernization is expected to prolong the operating life of the compressor station by 15 years, reduce fuel gas consumption by 28 percent, as well as boost energy conversion efficiency of gas compressors by 10 percent.

Deutsche Bank AG will provide funds to cover 85 percent of the cost of the project. German government will support all efforts to modernize Ukraine's gas transporting system (GTS), stated the German Ambassador to Ukraine Christof Weil in his comment of the signing of the agreement between the two companies. He noted that modernization was politically significant, since Ukraine transported energy resources to Germany.

Equipment upgrade at the compressor station Bar will be performed by German Ferrostaal Industrieanlagen GMBH, as agreed with Ukrainian company Naftogaz in July 2012. At the time, the German company informed that the renovation would pay off faster than the Russian alternative pipeline - South Stream - becomes operational.

Soyuz pipeline has the capacity of 26 billion cubic meters of gas per year. It was built in 1975-1979 and features 12 compressor stations. The pipeline delivers gas to the European countries from Orenburg gas field. The compressor station Bar was opened in 1979.

Modernization of the Ukrainian GTS was set to become one of the main tasks of a tripartite gas consortium, featuring Ukraine, the EU and Russia. Ukraine called for the creation of such consortium in February 2012. In October 2012, the Head of the Delegation of the EU to Ukraine Jan Tombinski informed the EU was set to contribute to the modernization of Ukrainian GTS.

Reportedly, Ukraine uses about two thirds of the estimated capacity of its GTS. Nonetheless, it already supplies 70 percent of Russian gas to Europe. Its renovation would allow for the increase of its transfer capacity, save time, financial and human resources, as well as help avoid threats to the environment that come with the building of alternative gas transit routes to Europe.

SOURCE Worldwide News Ukraine

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs