Ukraine plans to build a natural gas pipeline to Poland with a capacity of 5 Bcm/year and which will be able to both send and receive gas, state-owned shipper UkrTransGaz said Friday.
Construction of the 99 kilometer pipeline will start in 2017 and take three years. The capacity could be expanded to 8 Bcm/year later.
"We are preparing for the construction of the new gas pipeline," UkrTransGaz said. "Polish and Ukrainian gas sector experts completed feasibility study and are ready to begin the project."
The Ukrainian part of the pipeline is expected to cost Eur180 million and will go from Drozdovychy on the Polish border to the Bilche-Voltsa compressor plant, according to the company.
The pipeline will help Ukraine diversify its gas supplies and also to increase integration of its gas transportation system with central and eastern Europe, the company said.
The interconnection pipeline will give Ukraine access to liquefied natural gas supplies via an LNG terminal in Swinoujscie.
It is important for the new pipeline to be the dual mode because the government has forecast that Ukraine will eliminate completely gas imports by 2020. The new pipeline will also provide an opportunity for storing European gas in Ukrainian underground storage facilities.
Ukraine relies on imports of European gas after suspending imports of Russian gas last November, citing high prices.
Ukraine is currently capable of importing about 1.5 Bcm/year of gas from Poland.
In May Ukraine suspended gas imports from Poland to upgrade the pipeline, with the maintenance expected to end in the second half of July, according to UkrTransGaz.
