National Joint-Stock Company Naftogaz of Ukraine says Russia's Gazprom has placed an order for additional capacities for natural gas transit via the Ukrainian gas transportation system (GTS) in October 2020.
Read alsoGas TSO of Ukraine completes repair of gas pipe at Slovakia border"PJSC Gazprom needs additional capacities to transport natural gas via Ukraine's GTS to Europe in October. Today NJSC Naftogaz of Ukraine has secured additional capacities on interstate connections. Gazprom will pay additionally to the main transit agreement for the arrangement of the transmission," Naftogaz's press service said on its website on September 21.
Russia's gas giant will pay for such capacities in full, which will bring additional revenue to both Naftogaz and LLC Gas Transmission System Operator of Ukraine (GTSOU), the press service added.
Gas transit: Background
- On December 30, 2019, Ukraine and Russia signed a new gas transit contract for a period of five years, obliging Russia's Gazprom to pump a minimum of 65 billion cubic meters (bcm) of gas via Ukraine in the first year and 40 bcm annually in the next four years. The parties may extend the contract for another ten years.
- According to Naftogaz's estimates, Ukraine is expected to receive about US$7.2 billion from the transit of Russian gas over the five years.
- On September 2, 2020, LLC Gas Transmission System Operator of Ukraine (GTSOU) said transit shipments of natural gas through the country's gas transmission system in January-August 2020 shrank by 42% year-over-year, from 59.6 bcm, to 34.8 bcm.