Ukrnafta to Invest $1 Billion in Power Plant Construction

by Roman Cheplyk
Wednesday, July 3, 2024
Ukrnafta to Invest $1 Billion in Power Plant Construction

Ukrnafta, a leading Ukrainian oil and gas company, has announced an ambitious plan to invest $1 billion in the construction of power plants over the next three years

The project aims to develop power plants with a total capacity of 1 GW to address Ukraine's energy needs.

Investment and Financing

Serhii Koretskyi, the General Director of Ukrnafta, revealed that the initial phase will focus on building power plants with a capacity of at least 100 MW. The financing for this project will come from Ukrnafta's own funds and credit lines from Ukrainian banks such as Ukrgasbank, Sense Bank, and Oschadbank.

Project Goals and Timeline

The goal is to construct approximately 1,000 MW of gas plants over the next three years. Koretskyi emphasized that this is a highly ambitious project with an estimated cost of $1 billion. Alongside gas plants, Ukrnafta is also exploring wind and solar power plant projects, marking a significant step towards becoming a multi-energy company.

Driving Factors

The urgency to accelerate these plans stems from the ongoing Russian shelling of Ukrainian power plants and the resulting acute electricity shortages. This situation has necessitated rapid action to enhance the country's energy resilience and infrastructure.

Future Prospects

Koretskyi concluded by stating, "Ukrnafta will become a multi-energy company. This is inevitable." The move signifies a strategic shift towards diversifying energy sources and ensuring a stable supply of electricity for Ukraine.

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