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ENERGY POLICY

UKRAINE COUNTRY REPORT

Fichova

Oryna

Ukrainian

Head of Division Ministry of Fuel and Energy of Ukraine

May, 2009 – Tokyo (Japan)

Ukraine –

country profileCapital: Kiev Other

Cities: Dnipropetrovsk, Donetsk,Kharkiv, Lviv, OdesaLocation:

East Europe, bordered

by

Poland,Slovakia,

Hungary, Romania, Moldova, Russiaand

BelarusPopulation: 45.9 million Area: 603,700 sq km (233,090 sq miles) Government:

Presidential-parliamentaryIndependence:

August

24, 1991Languages: Ukrainian

(official), Russian, othersEthnic

Groups:

Ukrainians, Russians,Belarusians, Moldovans, Hungarians,Bulgarians, Jews, Poles, Crimean

Tatars

andother

groups.Main exports: Military equipment, metals,pipes, machinery, petroleum products, textiles,agricultural products

Ukraine –

economic profileGDP (2008):Total: $198 billionPer capita: $4287Growth: 6,9 %Currency: Hryvnia

(UAH)•

1 USD = 8,0 UAH•

1 EUR = 10,4 UAH•

Inflation rate –

22,3

% •

Interest rate –

12 %•

Foreign Investment Environment -

22.6%

Exports: $67 billion

(2008)Export

goods: ferrous

and

nonferrousmetals, fuel

and

petroleum products,chemicals, machinery and

transportequipment, food

productsMain

export

partners: Russia

21.3%,Turkey

7.1%, Italy

6.4% , USA

4.1%

Imports: $85.53 billion

(2008)Import

goods: energy, machinery

andequipment, chemicals Main

import

partners: Russia

28.2%,Germany

11.7%, Poland

7.6%,Turkmenistan

5.7%

Ukraine’s Energy Potential

The Unified Energy System of Ukraine is connected with 7 energy systems of the neighboring states by 75 transmission lines. The total technically feasible power transfer makes up more than

50 billions kW/year.

Burshtyn

„island”

operates synchronously

with UCTE and has the potential to

increase the energy export.

Main electricity producers are

–

14 thermal, 8 hydro

and

4 nuclear power plants with 52 mln. kW of total capacity.

Natural Uranium reserves in Ukraine allow to provide the national nuclear power needs for more than 100 years

Ukraine

possesses the significant established reserves and potential resources

Natural gas

–

900 billion m3(average annual production makes up

21 billion m3)

Oil and liquefied petroleum gas

–

140 mln. tons

(average annual volume of

production makes up

4 mln. tons)

Coal

–

the sole domestic energy source of Ukraine whose deposits can

potentially suffice to supply the national economy needs

Total volume of domestic coal reserves

–

117 billion tons

Recoverable reserves in the mines in operation

–

6,5 billion

tons, 3,5 of which

is power-generating coal1

Oil refinery plants

can refine up to 45-50 mln. tons of oil per year

Oil transportation system:

total length: 4 766,1 km

according to a single line

calculation• input system capacity from East

-

114,0 mln.

tons of oil per year

• output system capacity

(transit) -

56 mln. of tons per year

Gas transportation system of Ukraine includes:• 37,8 thousands km. of gas pipelines •

73 compressor stations, 110 compressor shops, equipped by

703 gas pumping units with 5,4 thousands MW of total capacity• above

1600 gas distribution stations

•

13 underground gas storage facilities with the total active capacity of more than 33,5 billion m3

•

input gas transportation system can maintain up to 290 billion m3, and an output system can transfer 175 billion m3 of natural gas

Volume of gas transit to the European and CIS countries makes up almost 130

billion m3 annually, more than 80 % of Russian gas is transported through the Ukrainian gas transportation system to the European consumers.

2

8,2 15,511,318,6

89,8

219,0

167,0

82,3

2008 2030

TPP and CHPP

NPP

HPP та HPSPP

Units and other sources

Structure of energy production in Ukraine, billions kW/year

Structure of energy generating capacities of Ukrainian power plants, mln. kW

TPP and CHPP30,4

57,8%

HPP and HPSPP

5,19,7%

NPP13,8

26,2%


3,26,1%

52,6

mln. kW

–

total installed capacity

88,5 mln. kW

–

total installed capacity

TPP and CHPP42,2

47,6%

HPP and HPSPP

10,511,9%

NPP29,5

33,3%


6,37,1%

2008 2008

2030 2030 191,7

420,1

43,0%

46,9%

52,1%

39,8%

According to the Energy Strategy of Ukraine for the period till 2030

THERMAL GENERATION

3

Installed Capacity Status at TPPTHERMAL GENERATION

4

10 000

11 000

12 000

13 000

14 000

15 000

16 000

17 000

18 000

19 000

20 000

21 000

22 000

23 00020

08

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

МВт

Наявна потужність, за умови Інерційне падіння встановленПопит на потужність

Anticipated Demand and Supply of the Thermal Generation Capacity, with the TPP Re-equipment Program being Implemented till 2020

THERMAL GENERATION

MW

Present capacity, providing the privatization of thermal generationInertial decrease of the installed capacityDemand on capacity

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5

Plans for Reconstruction of the Thermal Power Sector of Ukraine till 2020

The Government Decree of 8 September 2004 №

648-р

„On activities in relation to reconstruction and modernization of thermal power plants and central heat power plants in the period till 2020” constitutes a plan of reconstruction and modernization of TPP and CHPP in the period till 2020 in the thermal power sector of Ukraine. According to this Decree, reconstruction of 65

units to be completed, including 46

units of NJSC “Energy Company of Ukraine”

and 8

power units to be constructed.

After the technical re-equipment of thermal power sector approximately 17 600 MW of energy equipment will be restored and constructed and the total capacity of power plants will increase by more than 3 670 MW.

2718

12598

3673034050

0

5000

10000

15000

20000

25000

30000

35000

40000

2009 р. 2009-2010 рр. 2011-2015 рр. 2016-2020 рр.

Інвестиц

ії, млн

.грн

THERMAL GENERATION

6

Reconstruction and technical re-equipment of TPP power units, with energy efficient and environmentally friendly technologies of coal combustion

being introduced

Increase of TPP

operating capacity factor

Priority construction of new TPP units in the regions heavily undersupplied with generating capacities

Introduction of modern economic coal-fired steam power units, equipped with the system of liquefaction of NOX

emissions(nitric oxide), SO2

(sulfur oxide), dust and gas-vapor CHPP with coal gasification

Maximum use of domestic coal, particularly lignite coal

True and transparent terms of privatization of thermal generation facilities on the public auction under investment commitments of

investor

THERMAL GENERATION Key Development Domains

7

Implementation of projects on reconstruction of HPP and CHPPUnit reconstruction(І

level

–

capital expenditure, 100 - 250 USD/kW ):

Zaporizhya

–

4 х

300 MW, Kryvyi

Rih

–

4 х

282 MW, Zuyivska

–

3 х

300 MW, Kurahivska – 4 х

200 MW, Lugansk

–

3 х175 MW, Starobeshiv

–

3 х

175

MW, Burshtyn

–

3 х

185 MW, Dobrotvirska

–

1 х

150 MW, Vuglegirska

–

4 х

300 MWPrydniprovska

–

2 х

275 MWZmiyivska

–

2

х

175 MW

Trypillya

–

1

х

300 MW

Cardinal reconstruction(ІІ

and

ІІІ

levels

–

capital expenditure, 300 - 650 USD/kW ):

Prydniprovska

–

2

х

150

MW, 1х

285 МВт, Burshtyn

–

3

х

195 MW, Zmiyivska

–

3

х

275 MW

, Trypillya

–

2

х

300 MW.

Intergration

of new capacities at TPP (above supercritical units

with

600 MW*-Capital expenditure

1300 -

1400 USD/kW):Dobrotvirska

TPP

–

1 unit

(on

№10,11) Kryvyi

Rih

–

2 unitsKurahivska

–

1 unitLugansk

–1 unitStarobeshiv

–

1 unitBurshtyn

–

2 unitsVuglegirska

–

on unit 7Zaporizhya

–

on unit 7Trypillya

–

1 unit

(on

unit

№5,6)Zmiyivska

–

2 unitSlovyanska

–

1 unitCBS boilers (Circulating boiling spheres)

(ІІІ

level

-capital

expenditure

600 -

900 USD/kW):

Starobeshiv

–

215 MW;Dobrotvirska

–

225 MW, Myronivska

–

140 MW, Slovyanska

–

140 MW,Lugansk

–

215 MW,Prydniprovska

–

2

х175 MWDarnytsk

CHPP

–

125 MW

Komysh-Burunska

–

125 MW

Cogeneration on CHPP

-Capital expenditure

500 -

1200 USD/kW

:Kyiv

CHPP-6 unit 3 250 MW

with

GTN-120

(gas pumping unit)Cogeneration on CHPP and gas transportation system

from

5 to

150 MWCCGT-50 on BolgradskyiCCGT-70 on

Simferopol, OdessaCCGT-120 Izmayilska

GSPP (gas steam power plant).

* -

Perspective direction of construction of TPP units worth additional consideration within Ukraine-Japan cooperation.

THERMAL GENERATION

8

Primary projects of technical reequipment

of energy generating TPP power units

Reconstruction of TPP power units permits recovery of the units’

design capacity, extension of their lifetime, reduction in fuel unit costs, and compliance with environmental norms

THERMAL GENERATION

Project Name

Implementa tion terms

Need for Funds, UAH (mln.) Funding Sources for 2009,UAH mln.

Total including 2009

Internal Borrowed Budget

Reconstruction of unit 3 of Kryvyi Rih TPS with sulfur-nitrogen purifier

2009-2011 801 256 50 206 -

Reconstruction of unit 9 of Prydniprovska TPS 2009-2011 366 130 26 104 -

Reconstruction of unit 7 of Burshtyn TPS 2007-2009 422 141 28 113 -

Technical reequipping of unit 2 of Trypillya TPS ** 2009-2012 1156 5 5 - -

Reconstruction of unit 7 of Starobeshiv TPS 2009-2011 1050 0,2 0,2 - -

3 795 532.2 109.2 423 -

9

Construction of 14 new modern power units of 600 MW.

Construction of one coal-operated power unit of 600 MW capacity is estimated at UAH 4,25 bln. (1400 c.u. /kW capacity)

Targeted Effect:

•

annual electricity production at newly constructed power units will amount to 60,0 bln

kWh/year

•

annual fuel saving resulting from commissioning of new power units will arrive at 7 mln.

tons of coal per year.

•

reduction of СО2 emissions will come to approximately 28 mln.

tons per year.

Top Priority Construction Projects of Power Units of 600 MW Capacity and Supercritical Parameters

10

The TEPCO electric utility instructed by the Japan Bank for International Cooperation (JBIC) performed the task titled “Preliminary JBIC’s

investigation for the

purposes of the electric power plants improvement project in Ukraine (СІ

Project)».

Recommendations:Construct a power unit of 300 MW capacity (unit 8)within the 720 MW power unit № 6;To perform reconstruction of unit 7 upon putting power unit 8 into commercial operation

Technical Re-equipping Project for Slovjanskaya

TPP

Key technical and economic parameters of the project:Original investment

USD 490 mln.Payback period

13 years

Expected Results:

•

Lifetime extension by 15 years•

Fuel saving–

Reduction of fuel consumption by 10-15% –

Reduction of energy consumption to supply in-

house needs by

2%

11

ELECTRICAL TRANSMISSION LINES OF THE UNIFIED ENERGY SYSTEM OF UKRAINE

12

Electrical Transmission Lines Key Development Domains

Establishment of a systematized 330 –

750 kV electricity network

within the Unified Energy System (UES) of Ukraine to enable power

transmission from the western region into the short-supplied central

and eastern regions

Reconstruction and modernization of electrical networks and aged equipment of 220-750 kV substations

Ensuring power operation of NPPs

and HPSPP

Ensuring reliable energy supplies to discrete regions of Ukraine (Odessa, the Crimean,

the Carpathian and Southdonbass

regions)

Ensuring preconditions for parallel operation of the UES of Ukraine

and the synchronous UCTE zone.

13

1). 750 kV overhead transmission line (OTL) Rivne

NPP-

Kyivska

SS (Substation), with extension of 750 kV

Kyivska

SS and

750 kV OTL inlets.

Investment Projects underway

on Development of Ukraine’s Transmission Lines:

Estimated cost, investment sources and coverage:

Implementation Period:

UAH 500 mln.

(USD 99

mln.) –

internal funds of the SE NEC “Ukrenergo”,EUR 150 mln. -

EBRD loan, and

EUR

150

mln. - EIB.2008 –

2011

2). 750 kV

Kyivska

SS with 750-330 kV OTL inletsEstimated cost, investment sources and coverage:


For 2009

–

UAH 480 mln.

(USD 95,05mln)

incl.: -

UAH 330 mln. –

internal funds of the SE NEC “Ukrenergo”-

UAH 150 mln. –

special purpose fund of the state budget2005 –

2009

3). 330 kV OTL Adjalyk-UsatoveFor 2009: UAH 242 mln.

(USD 47,9

mln.)

–

internal funds of the SE NEC “Ukrenergo”UAH 92,6 mln.

EBRD loan.


Implementation Period: 2008 –

2009

4). Voltage shift to

330 kV of the Simferopol-Sevastopol OTL , subject to reconstruction and extension of the “Simferopol”

and “Sevastopol”

substations

For 2009: UAH 129,8 mln.

(USD 25,7mln.

) –

internal funds of the SE NEC “Ukrenergo”



2009

UAH 180,2 mln. (USD 35,7 mln.)

–

IBRD loan.For

2009: USD 16,5 mln. IBRD loan.

5). 330 kV OTL Dnistr

HPSPP –

Bar



2010

14

Construction of 750 kV OTL

Zaporizhzhya

NPP

–

Kakhovska

SS with 750/330 kV

SS “Kakhovska”

and construction of planned 330 kV transit lines


Implementation Period: 2009

–

2012

.

UAH 5 545 mln. (USD 1 100

mln.)*,For 2009

–

UAH 30

mln.

Internal funds of the SE NEC “Ukrenergo”There are plans for involving EBRD and EIB funds to the sum of UAH 5 500 mln. on a parity basis;

Design power output of Zaporizhzhya

NPP has been ensured.Electricity supplies to the southern regions of Ukraine have become more reliable; power uprate

by 800 MW allows for the transfer of the uprated

capacity from the UES of Ukraine to the Crimean peninsula.

Expected Project Results:

Design and cost-estimate documentation is planned to be derived in 2009

515

Nuclear Power in Ukraine

Рівненська

АЕСRivne

NPPРІВНЕRIVNE Хмельницька

АЕСKhmelnitsky NPP

Южно-Українська

АЕСSouth Ukraine NPP

Запорізька

АЕСZaporizhzhya

NPP

Дирекція

НАЕК

“ЕНЕРГОАТОМ”Main office NNEGC “ENERGOATOM”

Умовні

позначкиList of terms:

Типи

реакторівType of reactors

ВВЕР-1000WWER-1000

ВВЕР-440WWER-440

ХМЕЛЬНИЦЬКИЙKHMELNITSKY

МИКОЛАЇВMYKOLAYIV

ЗАПОРІЖЖЯZAPORIZHZHYA

КИЇВKYIV

Number of power units: 15

Electricity production at NPPs

in

2008 –

89,8 kWh

(46,9 %of total energy production

The total installed capacity of the NPPs

is 13,8

mln. kW

16

Environmental and operational safety enhancement of nuclear power plants

Lifetime extension of the operating power units by 15 years

Commissioning of

20 –

21 GW of replacement and supplementary

capacities at nuclear power plants

Attaining an 85-90% capacity factor for the power units

A 7,5 time increase of uranium mining resulting from exploration

of the Novokostyantynivka

deposits of uranium ore

Establishment of a centralized spent fuel dry storage facility for South-Ukraine, Khmelnytsky

and Rivne

nuclear power plants

Ensuring an alternative source of fresh nuclear fuel supplies

Establishment of domestic nuclear fuel production, having foreign industries involved solely at the uranium enrichment stage

Construction of a fuel assemblies manufacturing plant in the territory of Ukraine to supply the needs of nuclear power units

NUCLEAR POWER KEY DEVELOPMENT DOMAINS

17

7

Schedule of Construction and Commissioning of New and Lifetime Extension of Operating NPP Power Units

18

Design and Construction of Khmelnytsky

NPP Units 3 and 4

Design Features:

Estimated cost, investment sources and coverage :


2 power units of 1000 MW capacity each

UAH 14

900,7

mln.

(USD 2 950

mln.)

2009 –

2015

KhNPP-3 (construction status

–

75%

complete)

KhNPP-4 (construction status

–

28%

complete)

For

2009 к

–

UAH 45 mln.

Potential Project

19

Raw Material Base of Nuclear Power Engineering in UkraineUkraine:

according to the data on identified uranium resources, Ukraine ranks 1 in Europe

and 6th

in the world having 400 mln. tons in reasonable assured and inferred resources; the mineable

reserves of the biggest Novokostyantynivka

minefield

amounts to 90 mln. tons of uranium ore

has 12 proven uranium endogenetic

minefields

Is in possession of unique zirconium deposits which are the largest in Europe;

Ukrainian enterprises are actual monopolists in the field of zirconium raw material supplies to the world market

Has uranium and zirconium ore processing facilities

Has research and industrial infrastructure supported by the up-to-date technologies

to produce nuclear grade zirconium and hafnium as well as rolled

zirconium

Ukraine is the third largest –

next to the USA and France –

producer of pure

hafnium

Natural uranium deposits of Ukraine make it possible to supply the needs of the

operating nuclear power plants of Ukraine for over 100 years; should the fast breeder reactor technology be used the productive capacity of the resources will increase 60-70 times 20

Establishment of an Enterprise on the Base of Novokostyantynivka

Uranium Mine




UAH 8 600,0

mln. (USD 1 703 mln.)

Increase of uranium ore mining. Construction and putting into operation of the Novokostyantynivka

enterprise are the determining factor to ensure the maximum production growth and precondition development of the uranium complex.

Ensuring uranium ore mining to the total output of 2500 thousand tons per year.

2000

–

2018

21

Gas Transportation System of Ukraine

Supply to Ukraine:(billion m3)288 - projected184.3 - 2006168.9 – 2007

172172..8 8 –– 20082008

Including Transit to the European countries (billion m3)142.1 - projected113.5 - 2006112.1 – 2007117117..2 2 –– 20082008

Transit through Ukraine (billion m3)178.1 - projected128.2 - 2006115.1 – 2007119119..6 6 –– 20082008

Ivantzevychi-Dolyna

Torzhok-Dolyna

22

MAIN CHARACTERISTICS OF THE TOP PRIORITY MAIN CHARACTERISTICS OF THE TOP PRIORITY PROJECTS PROJECTS

1.

Upgrading of gas-pumping units at compressor stations of the “Soyuz”

gas transmission pipeline•

Duration

5 years•

Cost

USD 662.2 M•

Pay-back period 6 years

2.

Upgrading of gad –pumping units at compressor stations of the “Urengoy

–

Pomary-Uzhgorod”

gas transmission pipeline•

Duration

6 years•

Cost

USD 569.1

M•

Pay-back period

5 years

3.

Rehabilitation of gas-measuring stations •

Duration 6 years•

Cost

USD 68.9

M•

Pay-back period 7.5 years

Rehabilitation of the Gas Transportation System of Ukraine

Required volume of investments: EUR 2

500 M

Implementing a new energy effective, resource-saving equipment would allow: 1)

retaining a leading role in in the Russian gas transit to Europe; 2)

providing for a reliable gas transportation; 3)

increasing the efficiency of gas-pumping units up to 37%; 4)

providing for annual fuel gas savings making up approximately 0.4 billion м3 for each gas transmission pipeline; 5)

reducing the operating costs; 6)

decreasing environmental pollution.

Period of Implementation: 2010 –

2014

18 23

Replacing the Aligned Blowers for Natural Gas Pumping in the Gas

Main-Pipelines with the Blowers Having Improved Performance Indicators

We suggest developing a Feasibility Study for replacement of aged and obsolete aligned blowers with the blowers having better performance at the following compressor

stations (CS):-

Berdychiv

CS;-

Krasyliv

CS;-

Ternopil

CS.At the same time, a possibility is considered for operating aligned blowers driven by electric motor and gas-turbine.

Main Technical Characteristics of CSMain Technical Characteristics of CS::

№ Indicator Berdychiv

CS Krasyliv

CS Ternopil

CS1. Type of the installed gas-pumping units ГТК-10 ГТК-10 ГТК-10

2. Rated capacity of a gas-pumping unit, MW 10.0 10.0 10.0

3. Number of gas pumping units installed at the compressor state, pcs.

6 6 6

4. Nominal efficiency of the compressor station, million m3/day

58.60 58.60 58.60

5. Input peak pressure of the compressor station, MPa 5.5 5.5 5.5

6. Maximum degree of compression at the compressor station 1.54 1.54 1.54

Future Project

24

Transfer of Gas Turbine Compressor Stations (CS) for Motor-Driven Operation ГПА

We suggest developing a Feasibility Study for transfer of gas-turbine CS for motor-driven operation of gas-pumping units.As per estimations, the following compressor stations are most suitable to rehabilitate replacing a gas-turbine drive with a motor-operated drive gas-pumping units:-

Berdychiv

CS;- Krasyliv CS;-

Ternopil

CS.

Main Technical Characteristics of CSMain Technical Characteristics of CS::

№ показник Berdychiv

CS Krasyliv

CS Ternopil

CS

1. Type of the gas-pumping units installed GТК-10 GТК-10 GТК-10

2. Rated capacity of a gas-pumping unit, MW 10.0 10.0 10.0

3. Number of gas pumping units installed at the compressor state, pcs.

6 6 6

4. Nominal efficiency of the compressor station, million m3/day

58.60 58.60 58.60

5. Input peak pressure of the compressor station, MPa 5.5 5.5 5.5

6. Maximum degree of compression at the compressor station 1.54 1.54 1.54

25

Ensuring stable and effective operation of the gas transportation system and improving its operational safety

Rehabilitation and upgrading of gas-pumping units and compressor stations of gas transit pipelines

Systematic diagnostics of gas –main pipelines

Decrease in gas transportation losses

Enhancing accuracy and reliability of measurements of gas quality and volumes

11 boundary gas measuring stations at the point of entry to the gas

transportation system of Ukraine are to be provided with instrumentation of measurement with an uncertainty below 0.4%.)

Establishing of a Metrological Center in the town of Boyarka, with technical support provided the EC

Increasing the gas volumes being transported through the territory of Ukraine

Implementation of a project on the construction completion of the “Bogorodchany-

Uzhgorod”

gas pipeline section (“Torzhok-Dolyna”

and “Ivantzevichy-Dolyna”

gas piplines)

Diversifying sources and routes of gas supplies

Participation in construction of new transit capacities for supplying gas from the Caspian region and Central Asia („NABUKKO”

gas pipeline)

OIL INDUSTRY Key Development Domains

26

Oil Transportation System of Ukraine

1

5,83,4

9,17,7

9

0123456789

10

млн

. тон

н / M

TA

2004 2005 2006 2007 2008 2009(план)

Volumes of oil transported through the "Odessa-Brody" oil pipeline in reverse

mode/ Oil transportation volumes

ODESA-BRODY OIL PIPELINE:

Length 674 kmDiameter 1020 mmInitial Capacity 14.5 mtaMaximum Capacity 45.0 mtaExisting Pumping Station 1Planned Pumping Station 2

27

Project on the Euro-Asian Oil Transportation Corridor (EAOTC) to Allow Reliably Supplying Caspian Oil to the European Market on Mutually

Beneficial Conditions for All Participants, Suppliers and Consumers

IPLE

“Sarmatia”•

Established in July 2004 with participation of OJSV “Ukrtransnafta”

and PERN “Przyiazn”

(Poland).•

In October 2007 the partnership was extended to include: PERN “Przyjaźń”, JSC “Ukrtransnafta”, GOGC Llc, SOCAR,

AB “Klaipedos

Nafta”.•

The feasibility study for the EAOTC Project is expected to be completed In March 2009 .

Based on preliminary conclusions of the Feasibility Study for the EAOTC Project:•

The first stage envisages to transport 5 M ton with using the existing infrastructure without substantial investments;•

At the next stage the construction of the “Brody-Plotzk”

oil pipeline and other infrastructure need to be completed along the corridor

route to increase the transportation volumes up to 40 M ton. 28

OIL INDUSTRY Key Development Domains

Diversifying sources of oil supply to Ukraine

Implementing projects on oil supplies from alternative sources (Caspian region, Middle East and North Africa);

Concluding long-term contracts for extraction of oil outside Ukraine (Azerbaijan, Kazakhstan, Libya, Egypt and others);

Upgrading and developing the oil transportation system,

Forming competitive tariffs for oil shipment, cost of services for its trans-

shipment and harbour

dues rates in the Black Sea ports;

Upgrading oil refineries, improving quality and enhancing competitiveness of the oil products produced in Ukraine

Developing the Euro-Asian Oil Transportation Corridor

Conducting negotiations with potential participants of the EAOTC

Project (oil

companies, oil traders,

owners of oil refineries,

and etc.) to address the transportation of Caspian oil with deploying the “Odessa-Brody”

oil pipeline, the

system of “Oil-trunk Pipelines “Druzhba”

and railway transport.

Implementing a project on construction of the “Brody-Plotzk”

oil pipeline after a

Feasibility Study for a project on the “Odessa-

Brody-Plozk”

oil pipeline construction is developed and approved by participants of the International Pipeline Enterprise (IPLE) “SARMATIA”, Ltd.

Establishing strategic reserves of the oil products

29

Resources of Hydrocarbons in the Ukrainian part of the Azov

and Black Sea shelf

2,280 M t of reference fuel, including:

Natural gas

–

1 933 M t of reference fuel,

Oil

–

159 M t of reference fuel,

Gas condensate

–

188 M t of reference fuel Including those located :•

in deep water –

1,003.0 M t of reference fuel, or

44%•

in shallow water

(up to 100 m) –

1,277 M t of reference fuel, or 56%

102.3 billion m3, or 7,0%

of the total resources have been already prospected;

57.2 billion m3, or

4,0%

of the total resources have been already confirmed.(All prospected and confirmed reserves are located in the shallow water).

Top Priority Project: Development of the Odessa and Bezymenniy

gas fields on the Black Sea shelf

2005 –

2039Obtaining during operation the additional gas resources amounting to 10.8 billion m3

Cost, Sources and Volume of Financing:

Implementation Period


UAH 2.8 M

30

Hydroelectric potential of Ukrainian minor rivers

Perspective projects:

1).

Construction of small-size hydro power plants with 250 MW of total capactity

Cost, investment sources and coverage:

Approximate project cost upon the preliminary estimate makes up 300 mln. Euro

2).

Construction of cascade of the minor hydro power plants on the Tysa

river (5 MHPP)

Single capacity

10-50 MWTotal capacity up

to

220 MWApproximate project cost upon the preliminary estimate makes up 320 mln. Euro

31

Potential Development Domains for the Ukraine-

Japan Cooperation in the Energy Sector

Designing and construction of advanced power units rated 600 MW each, having supercritical parameters, based on the technology of the Japanese companies.

Establishing a joint production of boiler and turbine equipment for 600 MW power units, with deploying manufacturing capabilities of the Ukrainian enterprises and Japanese technologies.

Supply, assembly and commissioning of equipment and tools for construction of the Dnistrovska

Hydroelectric Pumped Storage Power Plant and high voltage

lines, including efforts in the framework of the projects being implemented with the International Financial Institutions’

support.

Implementing projects aimed at reducing the green house gas and hazardous material released by Ukrainian thermal power plants.

Transferring gas-pumping units for motor-driven operation at compressor plants of the SC “Ukrtransgaz”

of NJSC “Naftogaz

of Ukraine”.

Upgrading of gas-pumping units with deploying Japanese compressor equipment.

Implementing projects aimed at reducing methane releases in the gas transportation system of Ukraine, with using a system of ecological satellite surveillance, and also deploying the Kyoto Protocol’s tools.

Participation of the companies Japanese in privatization of energy companies.

Potential Areas of Future Ukraine-

Japan Cooperation in the Energy Field

32

Thank You for attention!

Fichova Oryna,Ministry of Fuel and Energy of

Ukraine

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