EU Countries Show Interest in Ukraine's Gas Transportation System

      EU Countries Show Interest in Ukraine's Gas Transportation System

  PR Newswire

  KYIV, Ukraine, April 18, 2013

KYIV, Ukraine, April 18, 2013 /PRNewswire/ --

Poland, Hungary, Italy, Germany and other European states are currently
negotiating the use of Ukraine's underground gas storage facilities. This was
announced by Ukraine's Minister of Energy and Coal Eduard Stavytskyi at a
press conference in Kyiv. According to the minister, Poland, for instance,
considers using gas storage facilities to be able to control the prices on the
domestic natural gas market. 

EU member-states first showed their interest in Ukrainian gas storages in
February 2013, for its gas transportation system (GTS) boasts the extensive
underground storage facilities - 13 units with the total capacity of more than
31 billion cubic meters, reads Such capacity allows for stocking
sufficient volume of gas during summer months, so that it can be utilized
during peak situations in winter time in Europe.

Importantly, on May 3, 2013, in Brussels Ukraine and the EU will hold a
roundtable regarding further development of the Ukrainian gas market. The
roundtable will be chaired by EU Energy Commissioner Günther Oettinger and
Ukraine's Energy Minister Stavytsyi. The invitation to discuss the
modernization of the Ukrainian GTS and the establishment of the Eastern
European gas hub in Ukraine was sent to most of the leading gas companies,
including Russia's Gazprom.

In addition to EU's support for Ukrainian GTS modernization, the 27-nation
bloc helps Ukraine diversify its gas supplies. Thus, starting November 2012,
Ukraine has been receiving German gas through Polish pipelines. The amount of
gas imported through Polish territory in November 2012 - April 2013 reached
171 million cubic meters, reads

Furthermore, in 2013, Ukraine intends to sign agreements regarding reverse gas
supply from Germany through Hungarian and Slovakian territories. The expected
volume of gas Ukraine will receive under such arrangement can reach 7 billion
cubic meters. According to Minister Stavytskyi, this should influence the
current price Ukraine is paying for Russian gas (over USD 400 per thousand
cubic meters of gas).

Notably, in March 2013, many private companies along with Ukraine's public
company Naftogaz started supplying natural gas both from Europe and Russia to
Ukraine. Currently, the Eastern European country is purchasing most of its
imported gas from Russia (the projected 20 billion cubic meters in 2013,
informs Interfax).

Contact: For more information, please contact Maryna Khorunzha, +380443324784,, Project Manager at Worldwide News Ukraine.
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