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

Floating Wind and the Taming of Subsea Spaghetti

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Equinor Tries Again for a Japan Offshore Wind Lease

DOF Subsea Grows Its APAC Backlog

IK Group Spins Off Norclamp

Izomax Wins a Milestone Contract with Shell

"World's Most Powerful Floating Wind Turbine" Sets Sail

Environmental Group Backs Out of Scarborough Litigation

Heat Drives Asian LNG Spot Price Spike

Profit Decline, Reserves Downgrade Drag Beach Energy to 2.5-year Low

Current News

Velesto Completes Removal of Wrecked Naga 7 Jack-Up Rig Off Malaysia

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Global Offshore Wind Stumbles to the End of '24

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Malaysia's FPSO Firm Bumi Armada Eyes Merger with MISC’s Offshore Unit

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