Current state and modernisation

of Ukrainian GTS

Brussels, June 2012

Parameters of Gas Transmission System

Parameters Units Total

Length of gas pipelines, total 38.7

including: - gas mains 1000 km 22.2 - pipeline branches 16.5 Throughput capacity of GTS:

- input 288

- output BCM/year 178

including European countries 142 Number of compressor stations (compressor shops) item 72(110)

Number of gas compressor units item 702

Capacity of compressor stations МW 5442.9

Number of underground gas storage facilities (UGSF) item 12

Total working volume of UGSF bcm 30,9

Number of gas distribution stations (GDS) item 1455

Gas flows through Ukraine in 2009 – 2011 (Bcm)

Slovakia

Hungary

Romania

Poland

Moldova

RussiaBelarus

Drozdovychi

Uzhgorod

Beregove

Satu-Mare

Orlovka

Kyiv

Black Sea

Sea of Azov

Chernigov

Zhytomyr

RivneSumy

CherkasyVinnytsya

Khmelnytskyi

Lutsk

Ternopil

Lviv

Ivano -Frankivsk

Khust

Chernivtsi

Ananyiv

Kirovograd

OdessaMykolayiv

Kherson

Simferopol

Zaporishya

Donetsk

LuganskDnipropetrovsk

Poltava

Kharkiv

Sudja

Sokhranovka

Pysarivka

Platovo

Valuiky

Kobrin

Mozyr

Bilche Volytsko -Ugersk

Bogorodchany

Tekove

3

Transit:178,1 - capacity

95,8 – 200998,6 – 2010104,2 - 2011

Income:288 - capacity

122,8 – 2009134,4 – 2010137,7 - 2011

26,816,616,719,9

107,577,683,883,0

6,05,44,34,0

5,00,00,00,0

13,00,00,15,1

25,58,611,19,5

5,50,00,00,0

48,719,424,024,0

47,98,13,74,4

6,00,70,91,0

-0,83,32,832,5

0,00,00,0

92,665,267,970,6

5,02,83,44,0

13,27,97,15,9 4,5

0,30,30,7

3,53,03,23,1

28,9 2,03,13,5

Role of Ukraine’s GTS in European Gas Market

Priority Modernisation Objects of Ukrainian GTS

СЛОВАЧЧИНА

УГОРЩИНА

Р У М У Н І Я

ПОЛЬЩА

МОЛДОВА

РОСІЯ

Б І Л О Р У С Ь

Текове

Б.Волицько-Угерське

Богородчанське

Strategy of UGTS Modernisation and Reconstruction

Purposes:

• Reliability increase• Efficiency increase • Gas transit routes profitability • Reduction of environmental impact• Reduction of gas delivery risk to European consume rs via Ukraine

Priority tasks:• Maintenance of main transit pipelines and UGSF des ign parameters• Implementation of up-to-day, environmentally effec tive technologies • Implementation of up-to-day control methods of tec hnical state • On-line gas quantity and quality monitoring• Alignment of UGTS with relevant European standards

Basics of UGTS Priority ObjectsModernisation and Reconstruction

Total investment expenditure required for modernisa tion and reconstruction of UGTS priority objects reached 5 313.9 USD Mio, i ncluding:

- Linear part - 2 014 USD Mio- Compressor stations - 2 781 USD Mio- Underground gas storage facilities - 455.3 US D Mio- GMS at exit points of Ukrainian GTS - 63.6 USD Mio

Modernisation and Reconstruction leads to: ·Gas pipelines design parameters maintenance·Reliability growth in natural gas supply to domest ic consumers·Reduction of environmental impact ·Reduction of fuel gas volume

Calculation of initial expenses shows economical pr eeminence and benefits

1st stage of reconstruction:deadline – 3 years- reconstruction of linear part (isolation replacement and pipeline relaying)

- modernisation of

telemechanics and

communication systems

- modernisation of two CS

INVESTMENT COST –538.9 USD Mio, including:

own funds – 230.3loan funds – 308.6

СЛОВАЧЧИНА

УГОРЩИНА

Р У М У Н І ЯПОЛЬЩА

МОЛДОВА

РОСІЯ

Б І Л О Р У С Ь

Уренго

й-Помари

-Ужгоро

д

538.9T O T A L USD Mio

128.7Reconstruction of CS USD Mio410.2Reconstruction of linear part USD Mio

Modernisation and Reconstruction of Urengoy-Pomary-Uzhgorod Gas Pipeline (1 st stage)

LNG TerminalLNG Terminal

Ukraine’s Gas Supply Diversification Prospects