Ukraine Could Take Up to 40BCM of Gas From Europe

Ukraine is seeking to increase its import of gas from Europe with plans to take up to 40 billion cubic metres of gas from European suppliers, rather than Russian supplier Gazprom, through the reverse-flow of its gas transport system.

Speaking at a conference in Kiev yesterday, Deputy Chief Engineer for Ukrtransgaz Oleg Mikhalevich said that the 40 billion cubic metres could be taken without any additional cost to the company. 

Initially the company will seek to take 5 billion cubic metres of gas a year from Europe and is currently in the process of achieving this aim. Mr. Mikhalevich said that in the future this figure could rise to 40 billion cubic metres.

"We have already carried out activities that allow us to reverse the reception of about 5 billion cubic meters," he is quoted as saying on the Uktransgaz website.

Earlier this year, Ukraine said that it would be seeking to reduce its offtake of Russian gas from main supplier Gazprom in response to disputes with the supplier, including disputes on the cost of gas. Instead, Ukrainian Prime Minister Mykola Azarov said in March, the country may seek to buy Gazprom gas from German company RWE at a lesser cost.

"[Ukraine] will in fact buy Russian gas from the German company, and this will be cheaper than directly from Russia," he said.