Italian company ready to invest $2 bln in Ukraine's new GTS operator – media

Participants in the negotiation process say Italy-based Snam has major chances to win competition. The company is reported to be interested in importing Russian gas, ZN.UA journalists report.

"According to ZN.UA, Slovaks are also interested. However, it is the Italian company that is ready to invest $2 billion in the Ukrainian gas transportation system [GTS], and most importantly, to ensure that the Ukrainian GTS is loaded, amid Gazprom threats to halt gas transit after the so-called transit contract with Naftogaz expires December 31, 2019," the publication said.

At the same time, the Italian company’s close ties with Gazprom are deemed to be alarming, and should be taken into account, considering the potential turning of Snam into a "Trojan horse," the article reads.

Read alsoStockholm gas dispute: Naftogaz does not rule out bankruptcy in case of loss to GazpromIn October last year, it was reported that two European companies from Italy and Slovakia were ready to take over the Ukrainian trunk gas pipelines. They provided commercial offers, noting the terms of their engagement as operators of the Ukrainian GTS. To pursue cooperation, Ukraine needs to restructure management of the trunk gas pipelines into a separate entity.

Read alsoNaftogaz: Gazprom violates contractual terms, reducing gas pressure at entrance to Ukraine's GTSAs UNIAN reported, in 2015 the Ukrainian government initiated the reform of NJSC Naftogaz of Ukraine to fulfill the requirements of the Third Energy Package of the European Energy Community, which assumes differentiation of functions of extraction, transportation, and supply of fuel to end consumers.

As part of this reform, on November 9, 2016, Ukraine's Cabinet of Ministers decided to create a new company, the GTS operator, PJSC Trunk Gas Pipelines of Ukraine.