USPA presented an investment project for a LNG terminal in the port of Reni

The Reni branch of the Ukraine Sea Ports Authority is considering the possibility of attracting investors for the implementation of a public-private partnership project for the creation of a terminal for the reception, accumulation, storage and bunkering of vessels by liquefied natural gas at the seaport of Reni.

The project envisages the construction of a LNG terminal and a floating-point for bunkering of vessels in the territory of the so-called «Service bases» of the seaport of Reni.

The location in the special economic zone «Reni», the proximity of the Odessa-Bucharest international route, along with the possibility of efficient use of existing assets and related infrastructure, makes the LNG terminal project promising and beneficial both for the state and for a potential private investor.

Among the benefits of the project for a private investor is the possibility of obtaining international and European grants, participation in international programs for the construction of LNG terminals in order to reduce the environmental burden on the environment, as well as the inclusion of the Danube ports of Ukraine in the European Transport Network (TEN-T).

It is expected that the implementation of the investment project will contribute to the increase in the number of vessels’ take-offs into the Reni port and, consequently, to increase revenues from port fees and other services for USPA, as well as revenues to the budgets of different levels (tax payment, concession payment) for the state.

In addition, the project will have a significant positive impact on the economic, social and environmental situation in the region by creating new jobs, modernizing the infrastructure and reducing harmful emissions on inland waterways of Ukraine, in particular, on the Danube.

It should also be noted that the urgency of the creation of a LNG terminal, among other things, is due to the necessity of equipping stations of bunkering of vessels with LNG in Ukrainian seaports.By 2025, sufficient LNG terminals must be installed in seaports in accordance with Directive 2014/94/EU. Many European countries use liquefied natural gas as fuel for vessels for more than ten years. This has had a positive impact on both the economic efficiency of maritime transport and the environment.

Vessels working on liquefied natural gas are still few, but their number is constantly increasing.

The project is planned for the period of 2020–2025.