URENGOY- POMARY- UZHGOROD GAS PIPELINE

Promoter – Financial Intermediary

PJSC UKRTRANSGAS

Location

• Ukraine

Description

The project consists of repair measures on the Ukrainian part of the Urengoy - Pomary - Uzhgorod natural gas pipeline. Several sections of a total length of some 119 km and two gas compressor units will be replaced.

Objectives

The pipeline transports natural gas from Russia to Ukraine and the EU. The project contributes to its safe operation and improved energy efficiencies. The investments will address strategic EU and Ukraine energy supply issues through infrastructure rehabilitation in a sector important for Ukraine's economy.

Comments

Sector(s)

• Energy - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 355 million

Environmental aspects

The technical characteristics and potential impacts of the project components suggest environmental assessments to be conducted; Ukrainian legislation requires such assessments. The intended repair and rehabilitation measures are typical sector activities that do usually not result in significant negative residual impacts on the environment. Impacts are mostly temporary during construction works. The better efficiency of the new compressor units will result in a lower specific fuel consumption and less greenhouse gases emitted.

Procurement

Project procurement must meet the requirements of the Bank's guidelines.

Status

Signed - 1/12/2014