China will help Ukraine to build coal-to-gas plants, according to an agreement expected to be signed next week, Ukrainian President Viktor Yanukovych said Thursday.
Yanukovych is expected to travel to China next week for economic and trade talks, including on Ukraine's plans to start production of synthetic gas from coal.
"Most lily, these documents will be signed next week during my visit to China," Yanukovych said in a statement.
Ukraine has been seeking to build three or four plants that will convert coal to synthetic gas, which will be used by a range of consumers from steel makers to heating companies.
The projects will be backed by a $3.66 billion loan that provided by China Development Bank earlier this year.
"This large investment project with China is nearing its start and calls for construction of the plants that will produce synthetic gas," Yanukovych said.
Ukraine has been seeking to reduce dependence on imports of Russian natural gas by developing domestic sources of energy, including coal. Ukraine has enough coal in its soil to meet domestic demand for the next 400 years, according to the government.
Ukraine will produce 86 million mt of coal in 2013, compared with 69 million mt/year produced in 2010, Yanukovych said. The government's plan is to boost coal output to 109 million mt/year within the next five years.
"Ukraine will continue to build up output of coal,' Yanukovych said.
Ukraine's first plant converting coal to synthetic gas is planned to be build in Severodonetsk, the Luhansk region bordering Russia. The plant is expected to cost $400 million, and will be followed with similar plants in Horlivka, the Donetsk region, and in Odessa, the government said earlier this year.
Over January through October Ukraine's coal extraction decreased by 3.9% year on year, or 2.77 million mt, to 68.65 million mt, the official said.
