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EU Commission discusses gas supply to Europe and Ukraine

Published by , Editor - Hydrocarbon Engineering
World Pipelines,


During gas talks in Berlin, Vice-President Guenther Oettinger proposed a new compromise to secure gas supplies to Europe and the Ukraine during the winter season. "This could be a fair deal for both sides to break the deadlock and ensure that gas supply to Ukraine and EU is assured for the coming winter," said Oettinger.

The proposal envisages the following commitments:

  • Ukraine would settle its debts based on a preliminary price of US$ 268.5/1000 m3 by making payments in two tranches: US$ 2 billion by the end of October and US$ 1.1 billion by the end of the year.
  • Gazprom and Naftogaz agree that at least 5 billion m3 based on a price of US$ 385/1000 m3 will be delivered to Ukraine in the coming winter with the possibility for Naftogaz to order more gas if needed. 5 billion m3 is the minimum volume Ukraine considers it would need in the coming winter.

The details of the proposal will be discussed by both governments and may be subject to another round of trilateral talks. If agreed, the proposal should be binding on both parties and complement the existing gas supply contract. Such an interim agreement is necessary as both Ukraine and Russia have referred the dispute to the international arbitration court in Stockholm and a final decision on the price and the debt is only expected next year.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/29092014/eu-commission-discusses-gas-supply-to-europe-and-ukraine-857/

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