Ukraine Significantly Increases Gas Imports from Europe

Ukraine imported 2.0 billion cubic meters (bcm) of natural gas in January 2015, according to the national gas transmission system operator (TSO) Ukrtransgaz. Gas imports from Europe totalled 1.1 bcm, with 1.0 bcm coming via Slovakia and 0.1 bcm via Hungary.

Natural gas imports from the Russia Federation fell 64% in January on a year-on-year at 0.9 bcm. During the same period in 2014, Ukraine imported 2.5 bcm overall, with the entirety of this volume coming from Russia.

Ukrainian daily imports of natural gas stood at 63.1 million cubic meters (mcm) as of January 31, with more than two thirds of this volume is entering Ukraine from the EU (42.5 mcm). Gas from the EU is currently offered at a lower price than gas from Russia, which means European imports are commercially preferable.

Increased imports of natural gas from the EU have been made possible by an expansion of transmission capacity from Slovakia. The latest increase took place on January 24, when daily capacity was increased from 31 mcm to 40 mcm.

Naftogaz CEO Andriy Kobolyev commented: "In only five months we have been able to almost double import capacity from Slovakia from 8 to 15 billion cubic meters per annum thanks to constructive cooperation with Slovak TSO Eustream and the European Commission. In 2015, this route can cover nearly 60% of Ukraine’s demand for imported gas. Just a year ago such an ability to diversify our gas supplies was unthinkable. Jointly with the European Commission we are continuing our work to have a direct interconnection agreement signed between Ukrainian and Slovak TSOs for all pipelines at this interconnection point.”