Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Gazprom proposes short-term gas deal with Ukraine

Gazprom has sent a letter to Ukraine formally proposing either to extend a current deal supplying gas to the country for its own use and for transit to Europe or to sign a new one-year agreement, the Russian gas exporter said.

The current 10-year agreement between Russia and Ukraine, which have been at loggerheads since Moscow annexed Crimea in 2014, expires on Dec. 31.

Russia needs time to finish building pipelines bypassing Ukraine in order to continue exporting gas to Europe, its largest market, without supplies passing through its neighbour. Without an extension to the deal, thousands of households on the continent are at risk of gas shortages during the winter season.

Ukraine's energy firm Naftogaz did not immediately respond to a request for comment. The country has previously said it preferred the certainty of a longer-term deal and would not agree to the short-term deal that Moscow needs.

State-controlled Gazprom also said on Monday that it had offered to drop legal claims and counter-claims by both Ukraine and Russia as a pre-condition for the deal.

Naftogaz has claimed it is owed compensation for Gazprom not pumping a certain volume of gas per year via Ukraine and paying too little for what it did send through the country's pipelines.

Russian President Vladimir Putin has also said the arbitration claims over the deal should be dropped, calling it "nonsense".

There have been several rounds of gas talks in Brussels, however, the meetings have so far failed to bring any tangible results.

Last year, Gazprom supplied Europe with more than 200 billion cubic metres (bcm) of gas, of which 87 bcm went through Ukraine, providing Kiev with valuable transit income. (Reporting by Vladimir Soldatkin; additional reporting by Pavel Polityuk in Kiev; editing by Jason Neely, Kirsten Donovan)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The continued expansion of natural gas trade is led primarily by growth in the LNG sector, which has tripled over the past 3 yr.
Industry Focus: The future of gas-to-power projects in Africa
-Shem Oirere
Natural gas is expected to play a central role in supporting Africa’s drive to achieve electricity connection for nearly 600 MM people without access to the grid, to reduce widespread reliance on coal for power generation, and to fast-track the continent’s slowed industrial expansion.
Regional Focus: Gazprom faces challenges for combined LNG/processing plant in Baltics
-Eugene Gerden
Russia’s largest natural gas producer, Gazprom, aims to build a giant project on the Russian Baltic seaport of Ust-Luga. The plans include the construction of a combined LNG and gas processing plant.


GasPro 2.0: A Webcast Symposium

Register Now

Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.

The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.

Attendees will learn about technology and operational solutions and deployments in a number of areas: plant design and expansion, construction, NGL production, optimization, sulfur removal, marine operations and separation technology.

October 24, 2019 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.