2019-03-06 11:45:00
RUSSIA'S GAS THROUGH UKRAINE: ZERO
PLATTS - Ukraine is preparing for zero Russian gas transit flows in 2020 once Russia's 55 Bcm/year Nord Stream 2 gas link to Germany comes online, but European gas supply security will not be disrupted, a senior Naftogaz executive said Tuesday.
This is because Russia could cover peaks in winter demand with gas stored in European facilities, for example, rather than by flowing small volumes via Ukraine, Naftogaz's executive director dealing with disputes with Russia's Gazprom, Yuriy Vitrenko, told an event in Brussels.
"When Nord Stream 2 is finished, there will be no need for Russia to use the Ukrainian route," he said.
Russia plans to bring Nord Stream 2 online by the end of the year, when its current transit contract with Ukraine expires.
In this event "there will be no Russian gas transit through Ukraine in 2020," Vitrenko said.
Russia flowed 87 Bcm/year through Ukraine to Europe in 2018, and has said it would likely flow 10-15 Bcm/year after Nord Stream 2 comes online.
The European Commission is keen to keep the Ukrainian transit route viable, as part of wider EU efforts to support Ukraine as it moves to integrate into the European energy market.
It has brokered meetings between Russia and Ukraine to discuss a new transit contract for after 2019, but Vitrenko doubted any such deal would be signed by the end of this year.
This is mainly because of the continuing arbitration dispute between Russia's state-owned Gazprom and Ukraine's state-owned Naftogaz over the current contract.
Naftogaz expects hearings on this to start in February and a final ruling in summer 2020, Vitrenko said.
Meanwhile he "sees no grounds" to expect a reasonable new transit deal with Russia.
"All Russia wants to discuss is extending the current transit contract -- which is not in line with EU rules -- and with no fixed volumes," said Vitrenko.
The only leverage to change this attitude would be for the EU "to say no to Nord Stream 2 unless Ukrainian transit is secured," he said.
The EU has no legal means to block Nord Stream 2 from being built, as long as the project developer follows all EU rules.
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Earlier:
2019, February, 27, 09:25:00
GAZPROM'S SHARE 36.7%
REUTERS - Gazprom’s share of the European gas market rose to a record high 36.7 percent last year from 34.7 percent in 2017, the company said.
2019, February, 15, 12:15:00
СЕВЕРНЫЙ ПОТОК 2 БУДЕТ РЕАЛИЗОВАН
МИНЭНЕРГО РОССИИ - «Мы считаем, что проект газопровода – коммерческий, и в нем заинтересованы европейские компании. Из-за того, что потребление газа в Европе будет расти, а собственная добыча – падать, Европа будет нуждаться в дополнительных объемах импорта. Наша конкурентоспособность подтверждена годами. Уверен, что проект будет реализован, он станет одним из основных инфраструктурных проектов на десятилетия вперед»,
2019, February, 15, 12:05:00
NORD STREAM 2 DEAL
REUTERS - Russia's planned Nord Stream 2 gas pipeline direct to Germany is set to face EU market rules after negotiators agreed informally to change the EU's gas directive to apply to offshore gas links, the European Commission said late Tuesday.
2019, February, 11, 10:30:00
NORD STREAM 2 CONTROL
REUTERS - Nord Stream 2 has divided the EU, with German opposition to the new draft rules stalling discussions since it was proposed by the EU executive in November 2017.
2019, February, 11, 10:25:00
NORD STREAM 2 RISKS
REUTERS - The pipeline project, which is majority owned by Russian energy giant Gazprom, plans to tap lenders this year, a spokesman for Nord Stream 2 told Reuters. He did not comment on the risk of new sanctions.
2019, February, 11, 10:05:00
UKRAINE'S DEBT: + $5.5 BLN
WBG - The report argues that reforms in three areas, in particular, are needed to reignite productivity growth: 1) creating supportive conditions for private sector development by adjusting the role of the state; 2) addressing corporate debt overhang by strengthening the legal framework, strengthening the financial system, and shoring-up the fiscal position of the government; and 3) strengthening Ukraine’s markets by lifting the moratorium on agriculture land sales and increasing incentives to accumulate savings and human capital.
2019, January, 30, 11:20:00
RUSSIAN GAS FOR EUROPE: 200 BCM
PLATTS - Russia's Gazprom Export believes that the record high gas sales of 200 Bcm in Europe and Turkey last year represented a "new reality" for Russian gas exports. Speaking Tuesday at the European Gas Conference in Vienna, CEO Elena Burmistrova also said she expected gas sales to remain at current levels over the next few years.
