Ukraine, Slovakia to agree 8 Bcm/year reverse gas flow Monday: EC

Brussels (Platts)--28 Apr 2014 813 am EDT/1213 GMT

Ukraine and Slovakia are to sign an agreement later Monday allowing 8 billion cubic meters/year of reverse gas flow starting this fall, if technically feasible, the European Commission said Monday.

The agreed memorandum of understanding foresees modernizing the "existing and unused Vojany pipeline at Velke Kapusany on the Slovakian side," the EC said.

This means that 22 million cubic meters/day of gas, or about 8 Bcm/year, can flow from Slovakia to Ukraine via the Vojany pipeline as from fall 2014, the EC said.

Slovakian gas grid operator Eustream is to check some technical details and confirm if this solution is feasible "within a few weeks," the EC said.

Article continues below...

Platts 8th Annual European Gas Summit
September 29-30, 2014, Berlin, Germany
Platts 8th Annual European Gas Summit

Platts European Gas Summit will return for its 8th consecutive year this September. This key fixture in the European gas industry's calendar will provide a platform for the region's leading gas companies, TSOs, regulatory bodies, industry associations, traders and analysts to meet, discuss and debate the future of the industry in light of recent events.

For more information, email or call +44 (0)20 176 6300

If it proves not to be feasible, "the alternative would be to start with a smaller volume and scale the pipeline up to 22 million cubic meters a day until April 2015," the EC said.

Eustream and Ukrainian gas grid operator Ukrtransgaz are to sign a framework interconnection agreement Monday setting out the technical details of using the Vojany pipeline.

Ukraine can already import gas from the EU via Hungary and Poland, and last year imported about 2 Bcm this way, the EC said.

The MoU on reverse flows using the Vojany pipeline is only the first step, EC energy spokeswoman Sabine Berger told reporters in Brussels Monday.

"Further options will be legally and technically assessed in due course," she said.

Vojany is a 10 Bcm/year back-up pipeline to the main four parallel cross- border transit pipelines that together are capable of bringing about 81 Bcm/year into Europe.

The Voljany line is simpler to reverse than the main transit pipelines as it only involves Eustream and Ukrtransgaz.

The main transit route, however, involves Gazprom as the grid operator between the Ukrainian and the Slovak systems. A legal analysis has suggested that means Gazprom would have to agree to any reverse flows on those pipelines, an Eustream spokesman told Platts Friday.

The two countries' TSOs and their respective ministries as well as Russia and the EC are in talks to resolve this, the Eustream spokesman said.

--Siobhan Hall,
--Edited by Jeremy Lovell,

Platts Email

Copyright © 2017 S&P Global Platts, a division of S&P Global. All rights reserved.