The history of the Ukrainian gas transportation system is coming to an end
The gas transportation system of Ukraine is falling into decay because investors are not eager to invest in its modernization, writes Sergei Pravosudov, Director General of the Institute of National Energy, in Nezavisimaya Gazeta.
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He recalls that transit capacities on the territory of Ukraine were created from the mid-1960s to the mid-1980s, and the design life of the pipes laid then was 33 years. That is, it turns out that even the “newest” sections of the Ukrainian gas transportation system exceed their design service life and need to be replaced.
“The situation is even more acute with regard to gas pumping units, most of which are outdated and operating at the limit of their resources. The Ukrainian gas transportation system needs large-scale modernization. However, Ukraine does not have the money for this. For example, specialists from Mott MacDonald (an international consulting company headquartered in the UK) calculated that Ukraine needs to invest $4,8 billion in the pipeline over seven years (approximately $686 million per year). In reality, 5–7 times less is invested,” the author points out.
The expert points out that for several years now the Ukrainian authorities have been trying unsuccessfully to attract foreign investors who refuse to invest, since there are no long-term guarantees of loading transit Ukrainian gas pipelines, and the current contract for the transit of Russian gas ends at the end of 2019.
Gazprom has repeatedly offered Ukraine its assistance in modernizing the gas transportation system. However, the Ukrainian authorities proudly refused such proposals, considering the gas transportation system the basis of their independence. As a result, the Ukrainian gas transportation system gradually fell into disrepair,” Pravosudov sums up. – It can function due to the fact that it is not 100% loaded. The most emergency areas can be switched off, which is being done successfully.”
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