REUTERS
By boosting gas transit through Ukraine, Gazprom takes less gas from underground storage facilities in Europe to sell it later at a higher price.
Director of the Ukrainian GTS Operator Serhiy Makogon says Russia's Gazprom has boosted gas transit shipments via Ukraine in recent weeks, to a nearly highest daily level of 294 million cubic meters (mcm).
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"In recent weeks, Gazprom has increased [gas] transit through Ukraine almost to the maximum level recorded at 294 mcm. It can be concluded that Gazprom is making every effort to minimize the need to pump its gas from European USFs [underground storage facilities], by boosting supplies through Ukraine, to sell it later at higher prices," he wrote on Facebook on November 20.
Yet, he adds, gas prices for Europe would definitely rise if Gazprom stops gas transit.
Makogon also noted that after Gazprom's offer to extend the gas transit contract for one year only, it seems that the Russian monopoly does not plan to continue transit shipments through Ukraine after January 1, 2020.
As UNIAN reported earlier, transit shipments of natural gas through Ukraine's gas transportation system (GTS) in 2018 declined by 7.1% from 2017, to 89.774 billion cubic meters (bcm).
In 2017, Ukraine pumped 93 bcm of gas to the European countries, hitting a record high level over the past years.
The current transit contract between Ukraine and Russia's Gazprom was signed in 2009 for a period of 10 years. Once it expires (from 2020), the Russian monopoly plans to minimize gas transit through the Ukrainian territory.
National Joint-Stock Company Naftogaz of Ukraine on November 18 received an official offer from Russia's Gazprom to extend the existing gas transit contract from January 2020 for a one-year period.