Ukraine will resume the project of building a liquefied natural gas (LNG) terminal on the Black Sea coast in southern Odessa region, Prime Minister Arseniy Yatsenyuk said here Friday.

"Ukraine's Naftogaz has signed a memorandum of understanding with the American company Frontera to start the construction of the LNG terminal," Yatsenyuk told a cabinet meeting.

He added that the project, which was launched in 2012 but suspended in 2013 due to inadequate investment, will allow Ukraine to import LNG from Georgia through the Black Sea.

The construction of the 1.2-billion-US-dollar LNG terminal, designed to have an annual capacity of 10 billion cubic meters of gas, is aimed at diversifying Ukraine's energy sources and reducing the country's dependence on gas imports from Russia.