If Naftogaz fails to agree on the extension of the gas transit contract according to European rules, the company is ready to offer Gazprom a fallback on “swap” terms. It was announced by the Executive Director of Naftogaz of Ukraine, Yuriy Vitrenko.
“If Gazprom does not want to take on the risks associated with the Ukrainian Regulator and the gas transmission system operator (and according to European rules, the operator and the National Regulator have the appropriate authority to set or change tariffs and other essential terms of the contract), then Naftogaz is ready to take these risks. In this case, we offer Gazprom to conclude a contract with Naftogaz not for transportation services, but for the “swap” of gas”, Vitrenko wrote.
The gas transmission will be confirmed by adjacent operators (Slovakia, Hungary, Poland, Romania), who will then take responsibility for Gazprom for gas already in their systems.
“Gazprom will transfer us a certain amount of gas (a certain energy value of gas) at the Ukraine-Russian border, and we will transfer exactly the same amount (energy value) at the Ukraine-EU border”, he said.
He explained that such contracts for the “swap” of gas are relatively familiar for the European market (and possibly to Gazprom). So, such a contract can be concluded according to European rules, they are just different for contracts for gas “swap” and for gas transportation services.
Such a gas swap contract will be concluded under Swedish law and with arbitration in Sweden (as in the current contract). Transit fees will be predetermined by the parties, not the Regulator.
NJSC Naftogaz of Ukraine proposes to conclude a contract for 10 years, proposed by the EU, with a volume of at least 60 billion cubic meters of gas per year.
“We are satisfied with the EU proposal: to provide technical capacity for gas supplies from the Russian Federation to Ukraine in the amount of at least 90 billion cubic meters per year. So, there will be 30 billion cubic meters for additional transit volumes available for both Gazprom's gas and other companies' gas”, Vitrenko wrote.
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