(Bloomberg) -- Gazprom PJSC is sending natural gas to Europe via Ukraine at normal levels even after cutting off one of its longest partners
The Austrian energy company confirmed its Gazprom deliveries were reduced to zero as scheduled at 6 a.m
The cut comes after OMV said on Wednesday it would stop payments to the Russian firm to recoup a €230 million ($242 million) arbitration reward
The impact of the move for the European gas market may be limited at least for now as Russian flows into the region as a whole continue as normal
Gazprom supplies gas into Ukraine for transit
from where it travels to Slovakia for own consumption as well as further into Austria and other neighboring countries
Gazprom confirmed transit flows via Ukraine at usual levels for Saturday
Data from Slovakia’s gas transport operator Eustream show flows continue from Ukraine into Slovakia at the Velke Kapusany border point as normal on Saturday
Deliveries from Slovakia into Austria at Baumgarten also continue
with nominations for the day 17% lower than for Friday
gas is being taken or moved by other buyers
according to people with direct knowledge of the situation
Slovakia’s Slovensky Plynarensky Priemysel AS and Hungary’s MVM Zrt
might be responsible for continued flows within the region as they use upward tolerances in their contracts with Gazprom
head of European gas and global LNG at Energy Aspects Ltd
“This may be what we’re seeing today but it will be hard to sustain that level of flow without initiating a new contractual agreement,” he said
SPP wasn’t immediately available for comment
Russian gas flows to central Europe may adjust at the start of next week
given it takes about three days for the gas to move from Russia to Austria’s Baumgarten and the cut to OMV came abruptly
a competition regulator at Austria’s E-Control
confirmed in a statement on X that Russian gas for now is still arriving in Baumgarten
“Russian gas will continue to end up in Austria without an import ban; that’s market dynamics,” he said
an end to the OMV contract means a severance of the long-term commercial ties with Gazprom - which is ultimately much more important than where the individual gas actually comes from.”
OMV said it can meet supply obligations through 2025 and beyond via alternative sources in the event that Russian deliveries under its long-term contract are halted
The company is producing from its own assets in Norway and buying more liquefied natural gas
Chief Executive Officer Alfred Stern said in an interview on Thursday
Austria may accelerate the use of domestic inventories
which already dipped below levels seen in the previous two years at the same time of the year amid colder weather
“For this winter gas supplies are ensured,” OMV’s former CEO
said in an interview on Austrian public radio ORF
“Storage is full and demand is significantly down.”
But gas prices may rise 20% or more in the short term
who is urging Austria’s government to tap its 2bcm fuel reserve to dissuade market speculation
“The reserves are there and should be used to dampen prices,” he said
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The Eustream gas facility in Velke Kapusany
2025 at 10:23 AM ESTBookmarkSaveEuropean Union leaders called for stepping up efforts to resolve the Ukraine gas transit issue
a win for Slovak Prime Minister Robert Fico
who had threatened to veto the conclusions of the bloc’s emergency summit if the matter wasn’t addressed
who is seeking a resumption of gas flows via Ukraine
called it “a great success,” on Friday as he spoke with journalists in Bratislava
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BRUSSELS — The European Union is discussing a new plan that would harness Ukraine’s mammoth underground gas storage capacity to resolve a long-standing feud between Kyiv and Slovakia
according to two officials familiar with the talks.
The proposal, first discussed by European commissioners during a visit to Kyiv last month, aims to mollify Slovakia’s anger over lost energy revenue from the end of a gas transit deal between Ukraine and Russia in January. The agreement brought gas into the EU, with Slovakia reaping transit fees — up to €500 million annually
Slovakia’s pro-Russian premier, Robert Fico, has pushed Ukraine to revive the deal
threatening to cut power exports to Kyiv and support for its refugees
is mulling a plan that could help restart flows to Slovakia
according to one Commission official and one EU government official
The scheme would avoid the need to buy gas from Russia — a clear no-go under the bloc’s REPowerEU plan that aims to phase out Moscow’s imports by 2027
Ukraine would ramp up gas imports from Greece and Turkey and store up to 10 billion cubic meters of gas in its storage facilities
who were granted anonymity to speak about sensitive matters
Those flows would then pass via Slovak pipelines to countries like Hungary during winter when supplies are low
That “would make Slovakia a transit country again,” the Commission official said
adding it would also respect a “red line” for Brussels: “It has to be in line with REPowerEU objectives.”
The EU is under pressure to settle the dispute after government leaders earlier this month ordered the Commission to find “workable solutions to the gas transit issue” — a plea made to win Fico's support for defense spending initiatives
The EU has previously hinted at the benefits of fully exploiting Ukraine’s giant underground storage sites, which are Europe’s largest and can theoretically store a quarter of the bloc’s current total capacity
“We will seize the full potential of Ukraine's vast gas storages, of which 80 percent are located close to EU Member States,” Commission chief Ursula von der Leyen said during her team’s visit to Kyiv last month to mark three years since Russia’s all-out invasion of Ukraine
“This generates income for Ukraine,” she said
“All these efforts will result in greater energy security for both Ukraine and the European Union.”
the proposal would also avoid the difficulties involved in an alternative plan that Slovakia previously suggested: importing gas from Azerbaijan.
Despite the Caucasus country arguing it could replace Russian gas flows via Ukraine, experts have warned that Baku may have to rely on Moscow’s gas to meet EU demands
given Azerbaijan’s limited capacity to increase domestic gas exports and its lack of transparency
Some EU countries are warming to the new idea
“Solutions that can lead” to EU countries “not being dependent on Russian gas or oil are better than the ones that are,” Finland’s Climate and Environment Minister Sari Multala said in an interview
Ukraine’s Energy Ministry declined to comment
Slovakia’s Economy Ministry did not respond to questions on the proposal sent by POLITICO.
the storage plan faces a raft of logistical problems — and may not be realistic
a senior gas market expert at the ICIS consultancy
said the proposal is a “good idea” since it would also allow Ukraine to earn revenues from storing gas
But the capacity of the so-called Trans-Balkan pipeline that travels through Turkey
Romania and Ukraine can currently only carry around 2.5 bcm of gas
she said — far short of the proposed 10 bcm
That's because Romania and Bulgaria have not made enough gas trading capacity available
The fact that Romania's state-owned gas firm Transgaz charges “extortionate transmission fees” also sharply reduces the incentive to buy gas along that route
Hungary and other countries neighboring Ukraine have sufficient gas storage capacity to supply their own markets already
the former head of Ukraine’s state-owned gas grid operator GTSOU
That raises questions about what extra benefits Kyiv’s storage facilities could bring to the bloc
this idea does not make any commercial sense,” Makogon said
are skeptical about the business case.
“There is some” appetite still to buy gas from Ukraine despite the risks of Russia targeting its storage facilities
partly since the cost of moving gas from Ukraine to Slovakia is “huge.”
it would require EU countries to subsidize the flow of gas to and from Ukraine
“As long as [there] is political will and somebody is going to pay for it — fine,” the trader said
equivocates and some eye a Russian fuel return
People rarely think about Europe’s criss-crossing energy system
what went wrong (and right) on Monday and what happens next
The idea will be one of several options Brussels will suggest in May to sever Russian energy links
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Russian gas supplies have dropped via major routes
including via Ukraine and Belarus and through Nord Stream 1 under the Baltic Sea
The only route unaffected brings gas to Russia’s European friends – Serbia and Hungary
A stop sign is pictured next to the Russian Gazprom company's headquarters in Moscow
Gazprom has not booked gas transit capacity for exports via the Yamal-Europe pipeline for August
auction results showed on Monday (18 July)
Russian westbound gas flows via the Yamal-Europe pipeline to Germany from Poland have declined sharply on Thursday (3 March)
data from the Gascade pipeline operator showed
which has a monopoly on Russian gas exports by pipeline
could not fulfil its supply obligations owing to "extraordinary" circumstances outside its control
a clause invoked when a business is hit by something beyond its control
was effective from deliveries starting from 14 June
Kremlin-controlled energy giant Gazprom said on Wednesday (13 July) it could not guarantee the safe operation of a critical part of the Nord Stream 1 gas pipeline because of doubt over the return of a turbine from Canada
It will take another five to seven days for the turbine
to reach Russia if there are no problems with logistics and customs
The daily said the turbine will be sent from Germany by ferry and then transported by land via Helsinki
The equipment is expected to arrive in Russia around 24 July
with preparation work taking another three to four days
But a spokesperson for the ministry said that the turbine was a replacement part that was meant to be used only from September
meaning its absence could not be the real reason for the fall-off in gas flows prior to the maintenance
Ukraine's President Volodymyr Zelenskyy said he had told Canada's Prime Minister Justin Trudeau on Sunday that Ukrainians would "never accept" Canada's decision to return the turbine
Ukraine's energy and foreign ministries said on Sunday (10 July) they were "deeply disappointed" by Canada's decision to hand back to Germany a gas turbine needed for the Nord Stream 1 pipeline
Hungary on Wednesday (13 July) declared a "state of energy emergency"
announcing it would halt gas exports to neighbouring countries in a move aimed at securing the country's energy supply amid dwindling gas deliveries from Russia
The Poland-Slovakia gas interconnection is a new gas pipeline that is planned to be built in order to connect the gas transmission systems of Poland and Slovakia
Polish gas operator GAZ-SYSTEM and Slovakian gas operator Eustream are developing the project on a collaborative basis
The 165km gas interconnection is being developed as part of the European Union’s (EU) Trans-European Networks – Energy (TEN-E) Programme
which is intended to improve energy security and provide a stable supply of gas across Europe
Economic analyses and a feasibility study for the pipeline were completed in October 2012 and May 2013 respectively
The European Commission (EC) granted Project of Common Interest (PCI) status to the project in November 2017
This status is awarded to key infrastructure projects that aim to improve the energy market within the EU
along with helping to secure an affordable and sustainable source of energy
GAZ-SYSTEM and Eustream signed a grant agreement for construction of the project in December 2017
A connection agreement was subsequently signed by the two operators in April 2018
which was later used to support a positive final investment decision
The project is estimated to cost a total of €269.35m ($316.1m)
Construction works are slated to commence in the second half of 2018 and the interconnection is expected to be commissioned in 2021
The Poland-Slovakia gas interconnection will be a high-pressure
bi-directional pipeline with a diameter of 1,000mm
Its Polish section will be 59km-long and have a working pressure of 8.4 megapascals (Mpa)
while the Slovakian portion of the pipeline will be 106km-long and feature a working pressure of 7.4MPa
The pipeline will transport 6.128 billion normal cubic metres (Nm3) a year from Slovakia to Poland
while 5.052 billion Nm3 a year will be transported from Poland to Slovakia
The Polish segment of the pipeline will run through the communes of Sanok
Bukowsko and Komańcza in the Podkarpackie Province
the Slovakian section begins from the border with Poland in the Palota village at Lupkovský pass to an existing station at Veľké Kapušany
The project will include the construction of a compressor station in Strachocina and three closing shutoff valve stations in the villages of Hankovce
The existing Veľké Kapušany compressor station will be expanded with the addition of two new 8MW electric compressor units
the development will include the strengthening of the existing gas network in south-eastern Poland
The EC awarded a grant of €129,500 ($168,375) to GAZ-SYSTEM and Eustream to carry out testing and conceptual works for the TEN-E initiative
The EC also granted €4.6m ($5.1m) towards preparatory and engineering activities under the Connecting Europe Facility (CEF) Programme
which supports infrastructure projects in the transport
the project received an additional €107.7m ($114.5m) towards construction costs under the CEF programme
GAZOPROJEKT prepared the feasibility study for the project in collaboration with Ernst & Young and Slovakian GasTech
The Polish section of the pipeline was designed by PGNiG GAZOPROJEKT and the environmental impact assessment for the Slovakian section was prepared by Oil Gas Projekt
Mantovani was awarded a €25m ($29.2m) contract by Eustream to supply gas pipelines for the development as part of a joint venture (JV) with a Slovakian company
The Poland-Slovakia gas interconnection will form a key part of the North South Gas Interconnections in central and south-eastern Europe
It is anticipated to enable the integration of natural gas networks and improve energy security across the region
The project will diversify the gas supply routes for Central and Eastern European (CEE) countries by providing direct access to the Świnoujście LNG terminal
the Slovakia-Hungary Interconnection and the planned Eastring pipeline
The interconnection will also provide a new gas supply route for Poland
it is slated to increase the property tax paid by GAZ-SYSTEM by 2% a year
which will be put towards addressing the requirements of the local communities
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May 26 (TASR) – Semi-state company Eustream presented a new project involving hydrogen production from renewable sources to MPs of the parliamentary economic affairs committee at the compressor station in Velke Kapusany (Kosice region) on Wednesday
TASR learnt from company spokesman Pavol Kubik on the same day
As part of their working visit to the compressor station
which is used to ensure the transport of natural gas for target European markets
In addition to a traditional flow from the east to the west
one of the largest compressor stations in Europe also provides service to supply Ukraine in the reverse direction
MPs were particularly interested in progress in the construction of the Slovak-Polish gas pipeline
which will allow Central and Eastern Europe to diversify resources through a new access to the LNG market
Eustream is a Slovak gas transporter operating a network consisting of four to five parallel gas pipelines connecting Ukraine
The company has joined the European Hydrogen Backbone initiative
aimed at supporting future hydrogen transport routes in the EU
The initiative plans to create a network of almost 40,000 kilometres of hydrogen pipelines connecting 21 European countries by 2040
The Slovak part represents an important contribution to this initiative
enabling the future transport of hydrogen potentially supplied from Ukraine