Major European company to make reverse gas supplies to Ukraine through Hungary

World May 15, 2014, 21:02

As of May 15, Ukraine signed contracts with two European gas suppliers

KIEV, May 15. /ITAR-TASS/. Ukraine has signed a contract with one of the major European gas companies that will make reverse gas supplies to Ukraine through Hungary from May 21, Naftogaz of Ukraine says.

The contract was signed on May 14. However, the Ukrainian company declined to say with which company the contract had been signed, and on which terms, saying these were commercial secrets.

As of May 15, Ukraine signed contracts with two European gas suppliers, including Germany’s RWE that has started gas deliveries to Ukraine via Poland.

Ukraine also reached an agreement with Slovakia. The flow of reverse gas will begin from the autumn. However, Naftogaz of Ukraine has not signed a contract to this effect.

EU Energy Commissioner Guenther Oettinger said reverse-flow gas supplies from Slovakia to Ukraine by the trunk pipeline would be impossible without Gazprom’s consent as it would run counter to the Slovak company Eustream’s contractual obligations.

However he said such supplies by the Vojany-Uzhgorod pipeline would not require the Russian company’s agreement and would give Ukraine up to 10 billion cubic meters of a gas a year.

Oettinger believes that diversification of supplies will help to solve Ukraine’s gas problem in part. However reverse-flow supplies from Poland and Hungary by the Vojany-Uzhgorod pipeline will not be enough for Ukraine get through the coming winter comfortably.

He also said that the European Union was providing support to Kiev on the repayment of its gas debt to Russia.

Meanwhile, Naftogaz of Ukraine is planning to transport gas from Poland under a contract with Germany’s RWE until the end of April and throughout May.

According to the declared volumes, Naftogaz of Ukraine is to get 4.022 million cubic metres of gas from Poland on April 15-22; 4.08 million cubic meters a day on April 23-30, and 4.022 million cubic metres on May 1-31. Up to date, Ukraine was supposed to receive about 40 million cubic meters of gas from Poland.

RWE AG resumed gas supplies to Ukraine through its division RWE Supply and Trading on April 15 under a five-year framework agreement with Naftogaz of Ukraine signed in May 2012.

“RWE supplies to Ukraine are based on the European pricing principles, including transportation costs. The agreement provides for the delivery of up to 10 billion cubic meters of natural gas a year,” Naftogaz of Ukraine said.

In 2013, RWE supplied about 1 billion cubic meters of gas to Ukraine.

The maximum amount of gas Ukraine can get from Poland is 4 million cubic metres a day. However, “RWE has reiterated its readiness to increase gas supply to Ukraine as soon as transportation restrictions are lifted on the Slovak-Ukrainian border,” Naftogaz of Ukraine said.

The European Union has promised assistance to Ukraine in diversifying natural gas supplies.

Kiev is planning to buy about 290 million cubic meters of gas in Europe in reverse mode (about 140 million cubic meters will be delivered through Poland and the rest through Hungary).

Ukraine has been receiving natural in reverse flows from Europe since November 1, 2012. The gas is supplied across the Ukrainian border with Poland under a contract with from German RWE.

The gas is supplied across the Ukrainian border with Poland. RWE planned to supply up to 5 billion cubic meters of gas to Ukraine until May 2013. Last year Naftogaz of Ukraine imported 55 million cubic meters of gas using the reverse flow scheme.

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