Ukrainian Energy Ministry says has no specific proposals on Azerbaijani gas transit

MOSCOW. Aug 9 (Interfax) - No specific proposals on possible Azerbaijani gas transit through Ukraine after the gas transit contract with Russia expires in 2025 have been made just yet but are still quite possible, Energy Minister German Galushchenko said.

"As of now, there are no specific proposals regarding a contract for Azerbaijani gas transit. [...] I always say that we need to have a specific document on the table. As long as there is no specific proposal to discuss, I believe it would be premature to make any comments. [...] We will talk about this when possible initiatives evolve into practical propositions," Galushchenko told Ukrainian media while visiting the Khmelnitsky Nuclear Power Plant.

Azerbaijan is very interested in exporting gas to Europe, he added.

"I think that Azerbaijan is very interested in exports. See how much they have boosted it. I would not give any numbers but they are planning a significant increase in the supply to Europe. They have substantial resources to do so," Galushchenko said.

As to whether Russian gas transit might continue, he said, "We have said we are not planning to extend the contract for Russia. You should also recall a statement by [European Commissioner for Energy] Kadri Simson who said that Europe was not considering a contract extension and would not ask Ukraine to do that," Galushchenko said.

As reported, Azerbaijani President Ilham Aliyev said in late July that Baku was negotiating the possibility of extending gas transit through Ukraine with Russia, considering that the Russian-Ukrainian gas transit contract expires in 2024. He said that the Ukrainian authorities and the European Union asked Azerbaijan to help extend the contract.

Several days later, Naftogaz CEO Alexei Chernyshov said that the EU and Ukraine were looking for ways to ensure stable gas supply to Europe after the Ukrainian-Russian transit contract expires in 2024, and Azerbaijani gas supply could be an option.

"I have had a meeting with the SOCAR company, this meeting is a result of the Azerbaijani initiative. We welcome it and are holding talks quite consciously. First of all, this is a matter of storing gas in Ukrainian underground gas storage facilities, and, secondly, of its possible transit," Chernyshov said.

Azerbaijan produced 48,496.7 mcm of gas in 2023 (up 3.8% from 2022). Commercial gas production amounted to 36,413.8 mcm (an increase by 4.2%).

In 2023, Azerbaijan increased gas exports by 5.3% year-0n-year to 23.8 billion cubic meters, while supplies to Europe amounted to 11.8 billion cubic meters (+3.5%).