Ukraine to Offer Gazprom Discounted Transit Fees

Friday, May 18, 2018

Ukraine will offer Gazprom discounted fees for natural gas transit to ensure a flow from Russia to Europe after 2020, European Commission Vice President for Energy Union Maros Sefcovic said on Friday.

Russia's Gazprom and five European companies, with German backing, plan to build the North Stream 2 gas pipeline on the Baltic seabed to connect Russia directly with Germany, bypassing eastern Europe and limiting the flows via Ukraine.

The pipeline will double Russia's gas export capacity to Germany but threatens to cost Ukraine valuable revenues, while increasing European Union reliance on Russian gas.

"Ukraine is saying they want to maintain the transit of Russian natural gas to Europe and will seek solutions that would guarantee the higher the volume the cheaper for Gazprom," Sefcovic told Reuters at the Globsec security forum.

The volume of transit would have to be "commercially viable" for Ukraine, Sefcovic added.

According to energy firm Naftogaz's expectations, Ukraine will earn around $3 billion from transit in 2018.

Russian President Vladimir Putin said on Friday after meeting with German Chancellor Angela Merkel that Moscow was ready for talks with Ukraine on continued gas transit through the country.


(Reporting by Tatiana Jancarikova Editing by Alexander Smith)

Categories: Finance

Related Stories

Asia's Oil Industry Braces for Prolonged Hormuz Disruption

Petronas Awards Estuary Cluster PSC to Harvester Energy

ABS Backs Hanwha Ocean’s Standardized FPSO Design

PTTEP, Petronas Ink 35-Year Malaysia-Thailand Gas Deals

Iran Outlines Terms for Restoring Hormuz Shipping

Iran-Oman Talks on Hormuz Reopening Drive Down Oil Prices

TGS Extends Work on Indonesia’s Largest Seismic Acquisition Project

TenneT Completes Drilling, Installation of Protective Conduits for Wind Farms

Mermaid Maritime Expands Into US Offshore Market

ONGC Nears Venezuela Operatorship Deals, Regains Russia’s Sakhalin-1 Stake

Current News

Asia's Oil Industry Braces for Prolonged Hormuz Disruption

Petronas Awards Estuary Cluster PSC to Harvester Energy

ABS Backs Hanwha Ocean’s Standardized FPSO Design

Larsen & Toubro Adds Major ONGC Offshore Project to Orderbook

Energean’s Profit Rises as Israeli Gas Operations Recover

Saipem Bags Commissioning Contract for Türkiye-Bound FPU

Oil Jumps as Houthi Strikes Disrupt Saudi Energy Operations

Petronas Turns to AI to Accelerate Upstream Investment

PTTEP, Petronas Ink 35-Year Malaysia-Thailand Gas Deals

Iran Outlines Terms for Restoring Hormuz Shipping

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com