Ukraine Considers Importing Gas From Slovakia

KYIV, Ukraine, January 22, 2013 /PRNewswire/ --

Ukraine is exploring two additional options of reverse gas supply from Europe, stated the Minister of Energy and Coal Industry of Ukraine Eduard Stavytskyi on January 18, 2013, not disclosing the said options. At the same time, kommersant.ua  reports German RWE may provide Ukraine with gas from Slovakia, citing the source in the ministry. Additionally, Ukraine could import gas through Turkish LNG terminals.

As Ukraine is currently looking into cutting its gas dependence on Russia, Slovak and Balkan gas transporting routes could increase Ukraine's annual gas import through alternative routes to 12 billion cubic meters. In 2012, Ukraine imported approximately 33 billion cubic meters of gas, including 25 billion - from Russia and 0.06 - from RWE.

Ukraine has started gas imports through Polish pipelines following the respective agreement with RWE Supply & Trading GmbH in November 2012. The amount of gas imported through Polish territory in November - December 2012 reached 57 million cubic meters. The source in the Ukrainian ministry estimates that the January 2013 import through the route might increase up to 500 million cubic meters. In order to carry out further alternative gas supply projects Ukraine has to expand gas transporting system capacity on Polish and Slovak borders.

Reportedly, in January 2013, Czech Energeticky & Prumyslovy Holding acquired Slovak gas transporting system manager - Slovensky Plynarensky Priemysel, eliminating possible political obstacles to gas supply from Slovakia to Ukraine. According to earlier reports, Naftogaz planned to cooperate with RWE regarding the supply of spot gas through Slovak pipelines. Russian Gazprom made an attempt at hindering such arrangement, while additional technical shortcomings prevented the project from being put to life, as stated by Naftogaz official.

Presently, Ukraine takes measures to decrease domestic gas consumption, boost local production of gas, as well as diversify supply routes. In 2012, Ukrainian metallurgy factories dropped gas consumption by a quarter - nearly 1.3 billion cubic meters of gas less compared to 2011.

In Ukraine's effort to develop domestic gas resources, the Eastern European country cooperates with such global leaders as Chevron, Shell, and ExxonMobil, which will develop gas deposits in western and eastern regions of Ukraine, as well as in the deep marine shelf field under the Black Sea. Ukraine also actively develops alternative energy sources.