Ukraine to Produce Synthetic Natural Gas with China

December 9, 2013

The Ukrainian Energy and Coal Industry Ministry, China National Chemical Engineering Corporation (CNCEC) and its wholly owned subsidiary, Wuhan Engineering Co, are planning to build plants for the production of synthetic natural gas in Ukraine, the news agency Ukrinform reported on December 6.

Ukrainian Energy and Coal Industry Minister Eduard Stavytsky said this in Beijing after the signing of an intergovernmental agreement between Ukraine and China, the press service of the Cabinet of Ministers reported.

"The agreement determines the terms of the preparatory work for the launch of construction," he said.

A feasibility study for the construction of a plant in Luhansk region is be developed by May 2014, and the first stage of the plant will be commissioned by 2015.

The Ukrainian-Chinese project is part of a national program for the substitution of natural gas with coal. The program was envisaged as part of a $3.656 billion loan agreement between the China Development Bank and Naftogaz of Ukraine, which was signed in December 2012.

Copyright: Ukrinform, 2013