Ukraine Urges EU to Decide on GTS Prospects

Ukraine wants to hear from the EU a definite answer on prospects for exploitation of its gas transportation system in the future.

This was stated by Prime Minister Mykola Azarov at a meeting with EU Commissioner for energy, Günther H. Oettinger last week.

“The issue of modernization of our gas transportation system is addressed for three and a half years. I ask a simple question, it is necessary for Russia and the EU? Answer it. Or we will make our own decision about its use,” the PM said.

He stressed that Ukraine wants to have guarantees from Russia in terms of gas flow and from the EU on the purchase of gas.

According to Mykola Azarov, after the signing of the European Energy Charter Ukraine has still not received support for the energy policy from the EU.

However, the Prime Minister expressed his surprise with complicated negotiations with Slovakia on the re-export of gas. “We find it hard to understand why negotiations with Slovakia are so difficult. Slovakia is also a member of the Energy Community. It is clear that any delay in this matter complicates our negotiations with Russia,” Mykola Azarov said.

In turn, Günther Oettinger said that the Ukrainian gas transportation system is an important component of European energy system, and the EU is ready to co-finance its modernization. “We have talks with our partners from the European Investment Bank, the EBRD and the IMF regarding the conditions for granting loans. We want to finance the modernization of the Ukrainian gas transportation system,” the Commissioner said.

He noted that the increasing by Ukraine of its own production of hydrocarbons, particularly from shale deposits was a great opportunity to attract long-term investment.

However, Günther Oettinger assured that the Commission will insist on compliance by all parties to the rules at the gas and energy market.

[mappress]
LNG World News Staff, October 15, 2013; Image: kmu.gov