Saturday, 12 November 2011

$4.8 billion needed to modernize gas transit pipelines

Experts from Mott MacDonald consulting company have considered the level of competence of Ukrtransgaz specialists (a subsidiary of Naftogaz Ukrainy, which services the gas transportation system) to be high, according to the Web site of the Dzerkalo Tyzhnia Ukraine newspaper.

"According to Mott MacDonald, taking into account the repairs of trunk gas pipelines, compressor stations and the installation of new gas metering units, as well as a modern system to manage the gas transportation system (GTS), its reconstruction and modernization will cost Ukrtransgaz (Naftogaz Ukrainy and consequently gas consumers in the country) at least $4.8 billion for seven years," reads the article on the ZN.UA portal.

The article notes that the priority is relatively inexpensive repairs, which will allow to keep the Ukrainian gas transportation system in a good working condition until it is fully modernized.

"To do this, Mott MacDonald recommends that at least $2.8 billion be invested in mini projects within the next eight or ten years. These costs are necessary to keep the system running. Simply speaking, this sum reflects a lack of funding during many years," reads the article.

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