Ukraine Gains From EU Court Ruling

UK consultancy Timera has shown the impact of the European Court of Justice (ECJ) ruling on Russian pipeline gas flows through the German gas line, Opal. Opal entry volumes, which start near Greifswald, landfall for NordStream, fell 260GWh/d (~8.5bn m³/yr equivalent) September 14 following the ECJ ruling, which effectively reduced Gazprom access to Opal by 12.8bn m³/yr (see graph).

This gas has been diverted into NEL, the other exit route for NordStream which runs westwards into the Netherlands, and through Ukraine, using the onshore route. Combined flows across Gazprom’s three key routes are now back to the period before the European Commission approved the plan to use Opal fully.

Ukraine is preparing for a new, European Union-based transit system with effect from January 1, requiring interconnector agreements with Gazprom and thereafter bilateral adherence to the EU regulatory framework. In the past, Ukraine has said that Gazprom has disregarded the existing agreement and delivered less gas than needed, without warning. This has forced Ukraine to lose money on balancing the network.

Transit flows revert to October 2016 pattern