Brussels, 16/12/2014 (Agence Europe) - Ukraine's gas storage capacity, which accounts for 40% of total EU storage capacity, provides a solution to countries affected by Russia's abandonment of the South Stream gas pipeline project. This could significantly increase their supply security by way of accessing the more fluid Western European gas markets through the gas supply grid in Ukraine. They also provide interested parties with the possibility of developing reserves and benefiting from seasonal gas prices, according to an explanation by the Ukrainian gas company Naftogaz, in a press release on 15 December.
By way of inversing supply flows, the interconnection between Ukraine and Slovakia through four gas pipelines provides a solution that could release a total annual capacity of 100 billion m³ of gas a year for central and south east European countries that were stakeholders in the South Stream project, such as Bulgaria, Hungary and Romania, explains Naftogaz. The Ukrainian gas company has welcomed the announcement of the setting up of a high-level working group with the Commissioner for Energy Union, Maros Sefcovic, to draw up a plan for integrating the gas markets and interconnections in the region (EUROPE 11214).
Naftogaz explained that “the solution is already technically available and does not require new investments from the EU or Ukraine. Using this option would require Commission action to ensure that the situation complied with the 'third energy package'. It is important that Ukraine, Slovakia and the Commission urgently tackle this question together”.
By using the common connection procedure in the rest of Europe, operators from the Ukrainian and Slovakian grids could jointly channel gas purchased in the EU and sent onto Ukraine, as well as gas to be sent from Ukraine to the EU. Only the net volume from this operation would be physically channelled through the interconnection, explains Naftogaz, which also clarified the fact that this change would not affect capacity from the Russian gas company Gazprom to supply gas contracted for its European customers. (EH)