Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Ukraine Ready to Sign Slovakia Gas Deal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/28/2014 | 12:15pm CET

BRATISLAVA, Slovakia--Ukraine's state-owned oil and gas company Naftogaz signed a pipeline access deal with Slovakia's Eustream on Monday, bringing Kiev's energy independence from Moscow a step closer and paving the way for talks on a wider-ranging deal to wean Ukraine off Russian natural gas sales completely.

Eustream and its Ukrainian counterpart Ukrtransgaz, owned by Naftogaz, agreed to allow Ukraine to use a 20-year-olld but never used pipeline on Slovakia's eastern border with Uzhhorod in western Ukraine. The deal would provide Ukraine with an initial 3 billion cubic meters of gas annually before being increased to 10 billion cubic meters some time next year.

Eustream's Chief Executive Tomas Marecek said eastbound gas deliveries to Ukraine can start this autumn, following tests to determine maximum pressure levels and updates to machinery.

Maximum gas flows from Eustream, together with supplies from Poland and Hungary, could total up to 17 billion cubic meters next year, Slovak Prime Minister Robert Fico said--which is about one-third of Ukraine's total annual demand of some 50 billion cubic meters.

Ukraine produces about 20 billion cubic meters of natural gas annually. Even with supplies from the west of Europe, it will see a shortfall of roughly 13 billion cubic meters. The former Soviet state will therefore probably need to continue buying gas from Russia's OAO Gazprom. The energy firm has increased the price it charges Ukraine by 81% this month, to $485 per 1,000 cubic meters, well above the $387 average price for Gazprom customers in the EU.

Ukraine's Minister of Energy Yuriy Prodan Monday said Ukraine is willing to pay the "market price" for gas.

Monday's agreement calls for the European Commission to start talks with Gazprom sometime this year over Ukraine gaining access to one of Slovakia's main pipelines, which could cover the remaining Ukrainian demand.

There is no firm timeline on those talks, however, and final approval for Ukraine's access to a major Slovak pipeline rests with the Russian company which has the legal equivalent of a veto on proposals to allow reverse, or west-to-east flows in key pipelines crossing the European continent.

Ukraine and its European partners have been considering reversing the direction in which natural gas flows in bigger pipelines across Slovakia, which would allow supplies to Ukraine. But last week European Commissioner for Energy Günther Oettinger said European Union analysis of contracts between Eustream and Russia's OAO Gazprom showed that Slovakia would be exposed to legal troubles if it halted westbound gas flows in any of its major pipelines.

Write to Sean Carney at sean.carney@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
06:33a HAKUHODO DY INCORPORATED : Survey finds generation gap among ASEAN millennials
06:33a RENAISSANCE GOLD : Kinross Gold to Acquire 70% Stake in Spruce East, Diamond Point and Buffalo Canyon Exploration Projects from Renaissance Gold
06:33a CHAROEN POKPHAND FOODS PUBLIC : Plans to Acquire Meat Processing Plant in Russia
06:33a RIVERSIDE RESOURCES : to Raise USD2.30 Million in Non-Brokered Private Placement of Units
06:33a IP : Adludio (Future Ad Labs) Secures USD0.035 Million in Venture Funding
06:32a ITS SKIN : It's Skin to Merge with Hanbul Cosmetics
06:32a ACCI AUSTRALIAN CHAMBER OF COMMERCE & INDUSTRY : Time for strong headway on Indonesia-Australia Comprehensive Economic Partnership
06:32a HIGH-END TOURISM BEST OPTION FOR ECONOMIC GROWTH IN PALAU : Adb
06:32a TELENITY : to Exhibit at Mobile World Congress 2017
06:28a SUNSET COVE MINING INC : Manganese X Energy Announces Dr. Moreno to the Board of Directors and Granting of Options
Latest news
Advertisement
Hot News 
0.23%ALE PROPERTY : talks 1H17 results
0.13%EXXON MOBIL : Lowers Proved Reserve Estimates
Most Read News
02/22 Crude oil rises after report shows drop in stockpiles
02/22 ABB : Switzerland's ABB hit by $100 million South Korean fraud
02/22 PRUDENTIAL FINANCIAL : may hit Wells Fargo for account scandal costs-filing
02/22 TESLA : says Model 3 on track for volume production by September
02/22 Nissan says Ghosn to relinquish CEO role, Saikawa to take helm
Most recommended articles
12:16aDJNEWS HIGHLIGHTS : Top Energy News of the Day
02/22DJCruise Operator Wants You on a Slow Boat From China
02/22 Dollar drifts as impact from Fed minutes and Mnuchin fade, Aussie slips
02/22DJAYALA : Plans Record PHP185 Billion Capital Expenditure for 2017
02/22 Trump to seek jobs advice from firms that offshore U.S. work