Ukrtransgaz proposes switching to large reverse to Slovakian Eustream

National joint-stock company Naftogaz Ukrainy is insisting on the expansion of the gas transportation capacity on the border of Ukraine and Slovakia and proposed that the companies switch from the 'small reverse' supplies of 10 billion cubic meters a year to the 'large reverse' supplies which exceed them by several times and which today is blocked by the Russian intermediary Gazprom Export.

"Ukrtransgaz asked Eustream [Slovakian gas transport system operator] with a proposal to sign a direct agreement on the merger of the pipelines which will allow using the transportation capacity between the two operators in full," reads a report of Naftogaz Ukrainy issued on Wednesday.

The Ukrainian company said that after analyzing the results of two months of the operation of the Vojany-Uzhgorod new gas pipeline on the border of Ukraine an Slovakia, it proposed a technical decision to Eustream which will allow considerably expanding the capacity of the gas transportation route.

Naftogaz Ukrainy said that the existing contract between Eustream and Gazprom Export which hinders the large reverse supplies is not in line with the requirements of the third energy package – the rules of the operation of the European energy market.

Naftogaz Ukrainy said that if the capacity of the Vojany-Uzhgorod pipeline is around 10 billion cubic meters of gas a year, Ukraine and Slovakia could transport around 100 billion cubic meters of gas a year using other four gas pipelines, while in the past years Ukraine supplies 55 billion cubic meters of Russian gas a year to the European Union using these pipelines.

Naftogaz said that the Ukrainian gas transport system operator Ukrtransgaz proved its ability of working directly with partners from the European Union and expressed hope that the Slovakian operator will support the soon introduction of the new technology and the increase in the capacity of the gas pipeline.

"Success work allow Naftogaz Ukrainy to say that there are no valid excuses not to allow Ukrtransgaz to sign direct agreements on the merger of all pipelines with Eustream and other gas transport system operators from neighbor EU countries," the Ukrainian company said.

The company said that the launch of the large reverse supplies at present is blocked by subsidiary of Russia's OJSC Gazprom – Gazprom Export – on the basis of the agreement with the Slovakian operator signed many years ago when the Russian monopolist managed to convince its buyers in Europe that the Ukrainian gas transport system operator will not be able to work stably. The result is that Ukraine accepts gas from Gazprom on its eastern border and gives it to Gazprom on its western border.

Naftogaz said that the implementation of the large reserve will allow companies to use the backhaul scheme, which foresees the transfer of similar volumes of gas in both directions and it will strengthen the energy security of the countries of Central and Eastern Europe, as gas from Europe could be sent to Poland, Romania, Hungary, Bulgaria and Serbia via the Ukrainian gas transport system.