National Joint-Stock Company Naftogaz of Ukraine intends using the proceeds of loan from the European Bank for Reconstruction and Development for a project to bridge the gap between the purchase and sale of natural gas.

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"The project, which has a total estimated cost of up to EUR 120 million, will involve the procurement of natural gas for deliveries via Ukraine's interconnections with the European Union," the company said in a General Procurement Notice on September 6.

"Tendering for the above contracts is expected to begin in fourth quarter 2019. Prequalifications for the above contracts is expected to begin late third quarter of 2019," reads the report.

As UNIAN reported earlier, Naftogaz on July 12 placed five-year loan participation notes (LPNs) worth EUR 600 million at 7.125% and three-year LPNs worth US$335 million at 7.375%.

UNIAN memo. NJSC Naftogaz of Ukraine is the largest state-owned vertically integrated oil and gas company in Ukraine. It accounts for about 90% of gas and oil production in the country. Naftogaz is engaged in the development of oil and gas fields, oil and gas production, transportation, as well as the sale of fuel through a network of gas stations.