Ukraine's PM Spurs Modernization of Gas Transport System

The Prime Minister of Ukraine, Mykola Azarov, would like to see the the national gas transport system (GTS) modernized, instructing Vice Prime Minister Yuriy Boyko to start elaborating the project.

According to a note released on Wednesday, Azarov said that Ukrainian underground gas storages and modernization of GTS can play a key role in strategic stability of European energy market.

“We have all the possibilities to play an important role on Eurasian continent. Ukraine has a unique geopolitical and geographic position, huge stores of hydrocarbons, coal and components of nuclear fuel, developed infrastructure of power energy and highly professional scientific and industrial human potential,” Azarov said.

Azarov delegated to Boyko the responsibility for the elaboration of a project, to be presented before the 28-29 November Eastern Partnership summit in Vilnius.

On Tuesday, Ukraine called for Chevron's $25 billion investments to develop the potentially large Olesska shale gas deposit in its west.

The government is keen to produce locally to ease Ukraine’s dependence on Russian gas. Ukraine also continues to make ambitious plans to decrease national energy consumption, switch its power stations from natural gas to coal, build an LNG terminal, and open reverse flows of gas from Europe.