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2019-03-15 10:10:00

UKRAINE NEED RUSSIA'S GAS

UKRAINE NEED RUSSIA'S GAS

PLATTSUkraine's Naftogaz wants Russia's Gazprom to comply with EU-style entry/exit gas capacity booking rules from 2020, as well as committing to a minimum throughput volume, its executive director Yuriy Vitrenko said in an interview.

The two companies are locked in a protracted legal dispute over the current transit contract, which expires at the end of this year, creating uncertainty about how and how much Russian gas will flow to Europe via Ukraine from 2020.

The companies have yet to agree any terms for post-2019, but Naftogaz wants Gazprom to sign a standard EU-style interconnection agreement, as well as a formal commitment indicating how much capacity it wants to book and where, Vitrenko said.

Gazprom sent 87 Bcm through Ukraine to Europe in 2018, but this could drop to less than 20 Bcm/year from 2020 if its 55 Bcm/year Nord Stream 2 link to Germany and 31.5 Bcm/year Turk Stream link to Turkey come online before then as planned.

EC PROPOSES 60 BCM/YEAR MINIMUM

The European Commission wants to support Ukraine as a Russian gas transit partner for Europe and has helped broker meetings between the two parties to discuss post-2019 transit.

Vitrenko, who has been closely involved in these talks, said EC vice-president for energy union Maros Sefcovic has proposed 60 Bcm/year capacity for 10 years for Gazprom's minimum booking commitment, with Ukraine ensuring another 30 Bcm/year capacity is available to cover any short-term extra needs.

Under the EU-style rules, "Gazprom wouldn't be booking transit gas any more -- it would be booking entry and exit capacity at different points as needed," Vitrenko said.

"We have multiple entry and exit points, and we need to know which ones to maintain," he added.

Naftogaz also needs Gazprom to agree a minimum volume so that the Ukrainian regulator knows how much capacity is expected to be booked and can regulate the tariffs accordingly, Vitrenko said.

Ukraine is adopting EU gas market rules, including detailed network codes regulating grid access and capacity booking.

"By the end of this year I expect the Ukrainian gas market to be on the same legal basis as an EU country," Vitrenko said.

The interconnection agreement, for example, would be based on a standard EU template developed by the EU's formal gas transmission system operators' body Entsog under the EU's binding gas interoperability and data exchange network code.

This agreement covers technical details between grid operators including data exchange and gas quality.

"In principle the interconnection agreement could take just a couple of days to agree and sign -- we only have to adapt a standard template," Vitrenko said.

Ukrainian entry and exit grid capacity could also be sold on the European joint gas capacity booking platform Prisma, he said.

"It's not a problem to use the Prisma platform. We have to define the capacities first though, and that depends on the TSOs on either side of the interconnection points, as we have to offer bundled capacity," he said.

EU RULES FOR NORD STREAM 2

The EU last month also agreed in principle to apply its market rules to offshore gas links with non-EU countries, in a bid to help Ukraine compete for Russia's transit business once Nord Stream 2 comes online.

The move makes it likely that Nord Stream 2 will face tariff regulation by Germany for its EU section -- the last 22 km to the German coast.

This would force the project company to reveal at least partial data on its costs and tariffs.

Making this data more visible would help Naftogaz offer competitive tariffs for its route, Vitrenko said.

"We need regulatory approval to offer tariffs below our total costs based on capital and operating expenditure," he said.

The Ukrainian regulator is more likely to agree to that if Naftogaz can show it needs to do so to be competitive with rival routes, he said.

The EC plans the next high-level meeting to discuss post-2019 Russian gas transit to Europe via Ukraine in May.

Gazprom has said it will not agree new terms until the current transit dispute is resolved. An arbitration appeal ruling on that is expected in mid-2020.

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Earlier:

RUSSIA'S GAS THROUGH  UKRAINE: ZERO
2019, March, 6, 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

 
 UKRAINE'S DEBT: + $5.5 BLN
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.

 
 IMF, UKRAINE ARRANGEMENT: $3.9 BLN
2018, December, 24, 11:35:00

IMF, UKRAINE ARRANGEMENT: $3.9 BLN

IMF - The Executive Board of the International Monetary Fund (IMF) today approved a 14-month Stand-By Arrangement (SBA) for Ukraine. The arrangement amounts to the equivalent of SDR 2.8 billion (about US$3.9 billion, 139 percent of quota). The Board also took note of Ukraine’s decision to cancel the arrangement under the Extended Fund Facility for Ukraine that was approved on March 11, 2015.

 
 UKRAINE'S WEAK INSURANCE
2018, November, 9, 15:10:00

UKRAINE'S WEAK INSURANCE

PLATTS - Ukraine is looking at different ways to use its vast gas transit network should Kiev fail to agree a new transit deal with Russia's Gazprom once their existing contract expires at the end of 2019, a senior Ukrainian politician said.

 
 UKRAINE'S GAS PRICE: +23%
2018, November, 7, 10:55:00

UKRAINE'S GAS PRICE: +23%

INTERFAX-UKRAINE - The final price of gas for households (taking into account transportation, distribution costs and VAT) will be UAH 8,548.92 per 1,000 cubic meters (a rise of 22.9% on the price that is in effect since April 1, 2017), and for municipal heat supply enterprises – UAH 8,361.85 per 1,000 cubic meters (a rise of 22.8%).

 
 IMF HAS UKRAINE FOR $3.9 BLN
2018, October, 22, 11:50:00

IMF HAS UKRAINE FOR $3.9 BLN

IMF - The agreement reached today reflects the IMF’s commitment to continue to help Ukraine achieve stronger, sustainable, and inclusive economic growth. The new program has been developed in close coordination with the World Bank and the European Union, who have parallel operations to support Ukraine. The authorities’ steadfast and effective implementation will be critical for the program to achieve its objectives.

 
UKRAINE'S GAS PRICES UP 23.5%
2018, October, 22, 11:45:00

UKRAINE'S GAS PRICES UP 23.5%

CNBC - Ukraine announced on Friday it would raise household gas prices by nearly a quarter as Prime Minister Volodymyr Groysman warned that the country risked default if it crashed out of its International Monetary Fund aid program.

 

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Tags: UKRAINE, RUSSIA, GAS, EUROPE

Chronicle:

UKRAINE NEED RUSSIA'S GAS
2019, March, 20, 10:50:00

ИНВЕСТИЦИОННЫЕ ПРОЕКТЫ ГАЗПРОМА

Совет директоров ПАО «Газпром» одобрил проводимую компанией работу по реализации крупнейших инвестиционных проектов. В числе приоритетных направлений деятельности компании — Восточная газовая программа.

UKRAINE NEED RUSSIA'S GAS
2019, March, 20, 10:45:00

РУССКИЙ ГАЗ ДЛЯ СЕРБИИ

В 2018 году «Газпром» поставил в Сербию 2,15 млрд куб. м газа — на 1,2% больше чем в 2017 году (2,12 млрд куб. м).

UKRAINE NEED RUSSIA'S GAS
2019, March, 20, 10:40:00

EUROPE'S GAS SECURITY

IEA - At the moment, Russia is sending record volumes to Europe while LNG utilisation rates remain relatively low. Limits to European production capacity and import infrastructure (with over half of pipelines operating at monthly peaks above 80%) may contribute to market tightness over the coming years, particularly if Asia continues to absorb the ramp up in global LNG liquefaction capacity.

UKRAINE NEED RUSSIA'S GAS
2019, March, 20, 10:35:00

S.KOREA'S LNG WILL UP

The South Korean government Tuesday gave its final approval to lower taxes on LNG used for power production by 75%, and raise those on thermal coal by 28% from April 1, in a move likely to boost downstream gas consumption.

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