Economy 2022-01-15T07:55:26+02:00
Ukrainian news
Naftogaz Risks Losing USD 320-425 Million Of Yearly Gas Transit Income If Gazprom Authorised For Additional Us

Naftogaz Risks Losing USD 320-425 Million Of Yearly Gas Transit Income If Gazprom Authorised For Additional Use Of 30-40% Of OPAL Capacity

Russia, Ukraine, gas, Naftogaz, Naftogaz of Ukraine, Gazprom, OPAL, pipeline, gas transit

If the European Commission authorises Russia's gas monopoly Gazprom for additional use of 30-40% of the capacity of the OPAL gas pipeline, Ukraine would lose some USD 320-425 million of yearly transit income (at the current transit tariffs).

Ukrainian News Agency learned this from a statement made by Naftogaz of Ukraine national joint-stock company.

Earlier this week, the media reported the Commission contemplating an extension of Gazprom's ability to use OPAL capacities.

The increase of capacity available to Gazprom in OPAL is likely to lead to an aggravation of the dependence of a number of the European Union countries from the Russian monopoly supplier. It will also support Russia's plans to destroy Ukraine's gas transmission system as a competitor in the delivery of gas to the EU consumers.

If additional 30% of OPAL capacity is made available to Gazprom, the transit volumes are expected to shrink by 10-11 bcm (billion cubic metres) per year resulting in lost revenues for Naftogaz of USD 290-320 million (based on the old tariffs). Should Gazprom get access to additional 40% of OPAL capacity, the transit volumes will drop by 13.5-14.5 bcm/y with Naftogaz' transit revenues decreasing by USD 395-425 million annually.

The decision of the German energy regulator, approved by the European Commission, currently in place stipulates that Gazprom may use only 50% of the technical capacity of OPAL amounting to 36 bcm/y. The remaining capacity is not to be used by the Russian party but rather is offered for other users.

«The Ukrainian side is hopeful that the decision of the European Commission regarding the usage of capacity of the OPAL pipeline in Germany will be fully in line with the EU energy regulations, including Article 36 of Directive 2009/73/EC concerning common rules for the internal market in natural gas, as well as the EU acquis on competition, which, inter alia, prohibits the behaviour directed at the abuse of market dominance,» the statement said.

As Ukrainian News Agency earlier reported, owned by Gazprom, Wintershall and E.On, OPAL connects the Russian Nord Stream pipeline with gas transmission systems of Central and Western Europe.

In 9M 2016, the transit under contract with Gazprom increased 17.7% or 8.7 bcm year over year, to 57 bcm.

Naftogaz expects the total volume of transit of natural gas under the contract with Gazprom to increase 4.5% or 2.982 bcm to 70.062 bcm in 2016, versus 67.08 bcm in 2015.