Germany’s RWE is the first European supplier to commence gas deliveries to the Ukraine in 2014. (Credit: Naftogaz of Ukraine)Germany’s RWE began deliveries of natural gas to Ukraine on Tuesday as a diplomatic crisis between Kyiv and Moscow raises the risk of Russia cutting off gas supplies to Ukraine.
According to the company’s press-release, RWE AG—via its trading and gas midstream arm RWE Supply & Trading—is the first European supplier to commence gas deliveries to the Ukraine in 2014. Today RWE re-starts deliveries to the state-owned company Naftogaz of Ukraine with gas from its pan-European portfolio.
The gas flows via Poland to Ukraine. These supplies are governed by the existing 5 year framework agreement between Naftogaz and RWE Supply & Trading signed in May 2012, which foresees deliveries of up to 10 billion cubic meter (bcm) of natural gas per year subject to individually agreed contracts.
In 2013, RWE Supply & Trading has already delivered about 1 bcm to Naftogaz. RWE’s deliveries to the Ukraine are based on European wholesale price levels including delivery costs to the Ukraine. RWE believes that further significant volumes could be delivered to Ukraine if various transport restrictions at the Slovakian/Ukrainian border are politically and technically resolved within the next weeks or months.
Earlier, operators of connecting gas transmission systems of Ukraine (Ukrtransgas) and Poland (Gaz-System SA) signed a supplement to the Operating Agreement, which specifies the procedure for the transfer of production and technical information between companies. Thus, the procedure for registration of the daily volume of natural gas that supplied to Ukraine by reverse mode through the gas measuring station Hermanowice, Poland is significantly simplified.
“This decision brings an agreement between the two operators into line with the European energy legislation. Thanks to these changes the procedure of import of gas to Ukraine becomes much easier,” Chairman of National Joint-Stock Company Naftogaz of Ukraine Management Board Andriy Kobolyev said.
