The first phase of Ukraine's liquefied natural gas (LNG) terminal project is expected to be completed in 2014, head of the State Agency for Investment and National Projects Vladyslav Kaskiv said on Friday, according to Xinhua.

"Technically, the floating unit can come to Ukraine in mid-2014. The start of gas supplies would depend on our partners," Kaskiv told reporters.

The floating storage and re-gasification unit to receive liquid gas will become the first stage of the LNG terminal project, he said.

The unit with an annual capacity of 5 billion cubic meters of gas will be placed in the Black Sea near the southern city of Odessa, he said.

Ukraine is also building an on-shore part of the terminal with a capacity of 10 billion cubic meters of gas per year. Its planned launch date is 2018.

The LGN terminal project, which will cost 1.256 billion U.S. dollars, is expected to cut the price of imported gas by 15-20 percent.

Ukraine relies heavily on the Russian gas, which costs about 426 dollars per thousand cubic meters in the second quarter of 2013.