Ukraine state oil and gas company signs $3.656B credit agreement with China Development Bank to finance substituting natural gas with coal
27 December 2012
The Ukraine state oil and gas company Naftogaz signed a US$3.656-billion credit agreement with the state-owned China Development Bank to finance the program of substituting natural gas with locally produced coal. The program is aimed at improving Ukraine’s energy security and alleviating dependence on foreign natural gas.
The contract, guaranteed by the Ukrainian government, stipulates implementation of four separate investment projects, which are to transfer national thermal energy production facilities to using coal-water fuel, and build five coal gasification plants.
If successful the project will allow the replacement of about four billion cubic meters of natural gas with coal, create 2,020 jobs, help Ukraine save an average of US$1.5 billion annually and stimulate the production of 10 million tons of domestic coal per year.
Previously, Ukraine expressed its interest in the Chinese technology of coal gasification and coal-water fuel production.
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