Slovakia agrees To Ship Limited Gas To Ukraine

Posted by Joseph R. Fonseca
Saturday, April 26, 2014
Slovakia & Ukraine

 

Slovakia and Ukraine have reached an agreement on opening up limited capacity for reverse flow of natural gas from central Europe to Ukraine and will sign the deal on Monday, the Slovak Economy Ministry said on Saturday.

Ukraine is trying to secure alternative supplies to those from Russia's Gazprom since Russia annexed Crimea last month and Gazprom nearly doubled prices for its gas to levels Ukraine is refusing to pay.

Russia's seizure of Crimea from Ukraine has set off the most serious East-West rift since the end of the Cold War, resulting in EU and U.S. sanctions and raising the threat of interruption of gas supplies from Russia to Europe.

Under the deal to be signed between the two countries' pipeline operators, Slovakiawill make technical adjustments to an old unused pipeline so it can ship over 3 billion cubic metres of gas a year to Ukraine from around October, rising to up to 10 bcm by early next year.

Ukraine has been pushing for another technical solution allowing much larger volumes but Slovakia is refusing that because it fears it would violate its contracts with Gazprom.

"I am convinced that this solution is the first possible and realistic one, and one which does not threaten the energy security of Slovakia and other EU countries," Slovak Economy Minister Tomas Malatinsky said in a statement.

The Ukrainian Energy Ministry also said it expected the agreement to be signed in Bratislava on Monday.

Europe takes about a third of its gas imports from Russia, and about 40 percent of that amount flows through Ukraine.

Ukraine, with annual consumption of over 50 bcm, needs much more than what Slovakia is offering to have a back-up in case supplies from Russia are interrupted.

It has been pushing for a bigger reverse flow solution that would involve turning the direction of gas flow in one of the four tubes of the main pipeline from Russia to the West.

That would allow shipments of around 30 bcm, securing a lot of Ukraine's need for its own consumption and for filling up its storages before next winter, which is needed to maintain enough pressure in the pipeline system and keep transit of Russian gas to Europe running.

But Slovakia, backed by the European Commission, says such a step would be against its contracts with Gazprom and risk sanctions or a halt in supplies. Gazprom's consent for such reverse flow is needed, the Commission and the Slovak government say.

The EU is seeking talks with Russia on gas, including the larger reverse flow option.

The agreement to be signed on Monday calls for taking gas on Slovak territory and pumping it to Ukraine via an unused tube connecting the Slovak Vojany thermal power station with a storage site in Ukraine's Uzhorod, just a few kilometres (miles) across the border.

Ukraine must still find gas to ship through the tube. Germany's RWE has started pumping smaller amounts to Ukraine from Poland, and said it could ramp up the shipments once there is an agreement on the Slovak reverse flows.

Moscow, which does not recognise the Ukrainian government that replaced ousted President Viktor Yanukovich in February, nearly doubled the gas price for Ukraine to $485 per 1,000 cubic metres, starting from April. Kiev, which is in deep financial trouble, refused to pay. (Reporting by Pavel Polityuk in Kiev; Editing by Stephen Powell)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

Eni Cancels Vessel Deal with Viking Supply Ships

Viking Supply Ships A/S (VSS) has received an early termination notice of the contract for the Ice-class 1A AHTS “Njord Viking”. The vessel has been working for

Energy

Los Angeles Pushes for Valero Terminal Improvements

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine

Canada Seek to contain Oil Spill

Authorities are building a new containment boom to fight an oil spill in a major western Canadian river, officials said on Saturday, after the spill breached a

Ecuador Pays $112 mln Award to Chevron

Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said.

News

Volvo Penta Names Brown Commercial Marine Sales Director

Dave Brown has joined Volvo Penta of the Americas as director of commercial marine sales.   In this new position, Brown will provide strategic and administrative

Cargo Barge Launched for Alaska Marine Lines

Alaska Marine Lines celebrated the launch of its newest barge, Skagway Provider, at a ceremony July 7 at Gunderson Marine in Portland, Ore. where the vessel was constructed.

Romica Manufacturer Secures DNV GL Approval

U.K. winch maker Romica said it is to “redouble its exports drive” after its Romania-based manufacturing partner successfully acquired accreditation with DNV GL.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0936 sec (11 req/sec)