Translated material
GAZ from Europe to the East
Reversible supplies directly depend on the difference in prices in Slovakia, through which almost half of the exports of Russian gas to Europe passes, on Tuesday the next negotiations on the organization of reverse supplies to Ukraine began. On the same day, the German energy company RWE announced the resumption of such gas supplies from the territory of Poland, suspended last fall. The signing of the Ukrainian-Slovak memorandum is scheduled for April 28. So far, each side offers its own scheme of reverse flows.
In the total volume of renewable reverse supplies to Ukraine from the territory of Poland, gas from Russia, Norway and the countries of the European Union will be represented by approximately equal shares, the German company RWE notes. And their cost will be determined based on wholesale prices in the European market and transportation tariffs.
For its part, the Polish gas transmission operator company GAZ-System noted that the volume of previous reverse supplies amounted to about 1.5 billion cubic meters per year. This is 5% of Ukraine’s needs for imported gas or 3% of its total consumption in the country.
The supply of gas from Europe to Ukraine began at the end of 2012 - in accordance with the contract previously concluded by the Ukrainian company Naftogaz with the German RWE, and continued until the fall of last year, says an independent Polish energy expert Andrzej Shchensnyak . Although it was about relatively small volumes, it was gas much cheaper than Russian.
- deliveries were carried out through gas substations "Drozdovichi" and "Germanovich" on the border of Poland and Ukraine, where there are technical capabilities for this. That is, gas, previously imported to Europe from Russia, continues the Ukrainian system, ”continues Shchensnyak. “A similar scheme is used in Hungary, but there we can talk about large volumes - 4 or even 5 billion cubic meters per year,” says Andzha Shchensnyak.
Judging by the preliminary statements of the Hungarian government, the reverse supply of gas to Ukraine can be approximately 3.5 billion cubic meters per year. In this case, the total volume of supplies from Poland and Hungary will not exceed 5 billion cubic meters, that is, 16% of Ukraine’s needs for imported gas. Whereas deliveries from Slovakia discussed at the negotiations that have begun here, already this fall, can amount to 3 billion cubic meters a year, and since the spring of 2015 - more than 9 billion.
According to him, Slovakia is very valuable to the contract of its Eustream gas transmission company, controlled by the state, with the Russian Gazprom, it guarantees transit payments for the period until 2029, even if Gazprom will not supply gas in Slovak gas pipelines at all.
In this context, apparently, Bratislava also offers to use the gas storage unused gas pipeline from the Slovak town to the gas storage near the Ukrainian Uzhgorod for reverse supplies to the east. To implement such a plan, it is necessary to build only a small branch on the Slovak side from the main gas pipeline to the proposed for reverse use.
The Ukrainian side, judging by reports from negotiations, believes that its capacities will be clearly not enough, and offers its own option. It proceeds from the fact that the withdrawal from one of the four main gas pipelines, starting in the Slovak territory, would return to the same gas pipeline, but already on the Ukrainian side.
In a professional language, such a solution is called "luping", explains Mikhail Korchekin (from the English Looping - the creation of a ring contours). And in this case, we are talking about a half -kilometer insert into the current gas pipeline. Part of the gas for Europe, having already passed a special counter at the entrance to the territory of Slovakia, is returned to the territory of Ukraine and is added to its next deliveries.
“With this scheme, Ukraine will be able to select the corresponding gas volumes anywhere in its gas transmission system - from the border with Russia to the western border with the European Union,” says Korchekin.
Slovakia, for its part, fears that such a scheme can somehow violate the conditions of its current contract with Gazprom. Slovak-Ukrainian negotiations are ongoing, and the signing of their final memorandum is still scheduled for April 28. But with any agreement, real supplies can begin this year no earlier than autumn, when prices in the European gas market, in anticipation of winter, traditionally increase.
- In the situation, as it was in the middle of last year, when the price of Russian gas was about $ 420 per thousand cubic meters and at once several tens of dollars exceeded the then exchange prices in Europe, gas supply from Europe to Ukraine turned out to be very profitable. But cost European prices to grow sharply in the fall, deliveries immediately ceased.
Reversible supplies are by no means charity, this is a profitable business: and the greater the difference between the price of Russian gas for Ukraine and the cost of European export of Gazprom , the more profiters have arrived, adds Mikhail Korchekin. Not only Ukraine wins, for the seller, that is, a certain European energy company, even the benefit is double: firstly, he receives part of the margin from the difference between prices, and secondly, the reverse to Ukraine helps this company and fulfill the obligation of Gazprom Beli or Paul, according to which it should guarantee the minimum volumes. “Europeans try to adhere to these minimums, and the Ukrainian reverse finds them in this help,” emphasizes Mikhail Korchekin.
In the total volume of renewable reverse supplies to Ukraine from the territory of Poland, gas from Russia, Norway and the countries of the European Union will be represented by approximately equal shares, the German company RWE notes. And their cost will be determined based on wholesale prices in the European market and transportation tariffs.
For its part, the Polish gas transmission operator company GAZ-System noted that the volume of previous reverse supplies amounted to about 1.5 billion cubic meters per year. This is 5% of Ukraine’s needs for imported gas or 3% of its total consumption in the country.
Reverse supplies are not charity, it is a profitable business, and the greater the difference between the price of Russian gas for Ukraine and the cost of European export of Gazprom, the more profiters have arrived
The supply of gas from Europe to Ukraine began at the end of 2012 - in accordance with the contract previously concluded by the Ukrainian company Naftogaz with the German RWE, and continued until the fall of last year, says an independent Polish energy expert Andrzej Shchensnyak . Although it was about relatively small volumes, it was gas much cheaper than Russian.
- deliveries were carried out through gas substations "Drozdovichi" and "Germanovich" on the border of Poland and Ukraine, where there are technical capabilities for this. That is, gas, previously imported to Europe from Russia, continues the Ukrainian system, ”continues Shchensnyak. “A similar scheme is used in Hungary, but there we can talk about large volumes - 4 or even 5 billion cubic meters per year,” says Andzha Shchensnyak.
Judging by the preliminary statements of the Hungarian government, the reverse supply of gas to Ukraine can be approximately 3.5 billion cubic meters per year. In this case, the total volume of supplies from Poland and Hungary will not exceed 5 billion cubic meters, that is, 16% of Ukraine’s needs for imported gas. Whereas deliveries from Slovakia discussed at the negotiations that have begun here, already this fall, can amount to 3 billion cubic meters a year, and since the spring of 2015 - more than 9 billion.
Five lines of gas pipelines are laid from Ukraine to Slovakia. Four of them are actively used, and these capacities are more than 90% reserved by Gazprom for supplies to Europe for the next 15 years. But he really uses less than half of the reserved capacities today, says Mikhail Korchekin , Executive Director of the East European Analysis consulting company.With this scheme, Ukraine will be able to select the corresponding gas volumes anywhere in its gas transmission system - from the border with Russia to the western border with the European Union
According to him, Slovakia is very valuable to the contract of its Eustream gas transmission company, controlled by the state, with the Russian Gazprom, it guarantees transit payments for the period until 2029, even if Gazprom will not supply gas in Slovak gas pipelines at all.
In this context, apparently, Bratislava also offers to use the gas storage unused gas pipeline from the Slovak town to the gas storage near the Ukrainian Uzhgorod for reverse supplies to the east. To implement such a plan, it is necessary to build only a small branch on the Slovak side from the main gas pipeline to the proposed for reverse use.
The Ukrainian side, judging by reports from negotiations, believes that its capacities will be clearly not enough, and offers its own option. It proceeds from the fact that the withdrawal from one of the four main gas pipelines, starting in the Slovak territory, would return to the same gas pipeline, but already on the Ukrainian side.
The price is the main factor in any reverse supplies
In a professional language, such a solution is called "luping", explains Mikhail Korchekin (from the English Looping - the creation of a ring contours). And in this case, we are talking about a half -kilometer insert into the current gas pipeline. Part of the gas for Europe, having already passed a special counter at the entrance to the territory of Slovakia, is returned to the territory of Ukraine and is added to its next deliveries.
“With this scheme, Ukraine will be able to select the corresponding gas volumes anywhere in its gas transmission system - from the border with Russia to the western border with the European Union,” says Korchekin.
Slovakia, for its part, fears that such a scheme can somehow violate the conditions of its current contract with Gazprom. Slovak-Ukrainian negotiations are ongoing, and the signing of their final memorandum is still scheduled for April 28. But with any agreement, real supplies can begin this year no earlier than autumn, when prices in the European gas market, in anticipation of winter, traditionally increase.
The price is the main factor in any reverse supplies, says Andrzej Shchensnyak:In reality, Gazprom uses today less than half of the gas pipelines reserved by it in Slovakia
- In the situation, as it was in the middle of last year, when the price of Russian gas was about $ 420 per thousand cubic meters and at once several tens of dollars exceeded the then exchange prices in Europe, gas supply from Europe to Ukraine turned out to be very profitable. But cost European prices to grow sharply in the fall, deliveries immediately ceased.
Reversible supplies are by no means charity, this is a profitable business: and the greater the difference between the price of Russian gas for Ukraine and the cost of European export of Gazprom , the more profiters have arrived, adds Mikhail Korchekin. Not only Ukraine wins, for the seller, that is, a certain European energy company, even the benefit is double: firstly, he receives part of the margin from the difference between prices, and secondly, the reverse to Ukraine helps this company and fulfill the obligation of Gazprom Beli or Paul, according to which it should guarantee the minimum volumes. “Europeans try to adhere to these minimums, and the Ukrainian reverse finds them in this help,” emphasizes Mikhail Korchekin.