Pilot deal between Slovakia's SPP, SOCAR to supply Azerbaijani gas concluded without involving Naftogaz of Ukraine - Naftogaz CEO

MOSCOW. Nov 14 (Interfax) - Naftogaz of Ukraine has not been involved as a possible transit company in the conclusion of a pilot deal between Slovakia's SPP and the State Oil Company of the Azerbaijani Republic (SOCAR) on natural gas supply, Naftogaz CEO Alexei Chernyshov said.

"This is happening without us. That's it," he told Ukrainian media on the sidelines of the Dialogues on the Future event in Kiev on Thursday.

"We would be happy if any volume was stored in Ukrainian gas storage facilities. Today, we are in need of this," Chernyshov said, noting that Ukraine would be interested in storing the purchased Slovak gas.

As a whole, Chernyshov said that it was essential to preserve the gas transportation system after the contract for the transit of Russian natural gas is terminated from early 2025.

"Ukraine has a strategic asset, namely, the gas transportation system. This is a huge, powerful asset, which makes Ukraine a supra-regional actor. Thanks to this potential, we have influence. This is a tremendous infrastructure that has to operate," he said.

"So, let's think how to make it work, not how to make it not work. These are different strategies. However, of course, given the restrictions, sanctions and other things that exist," Chernyshov said.

As reported, Slovakia's SPP said on November 13 that it had concluded a pilot contract for the supply of natural gas from SOCAR.

"After a successful evaluation of the cooperation, the company will consider concluding a gas supply contract for a longer period as well," the Slovak company said on its website.

"SPP supports the continuation of gas transit through the territory of Ukraine for a long time, because it is the most cost-effective solution for our customers. However, due to the high risk of stopping gas supplies via the eastern pipeline, we are taking measures to guarantee safe gas supplies to our customers, from large industrial customers to households, in any situation," SPP Board Chairman and CEO Vojtech Ferencz said.

In the event of a complete stoppage of gas supplies through Ukraine, SPP will take extra measures to ensure security of supply for the rest of 2025 and subsequent years, the statement said.

SPP said that diversification has its price, and in the event that Russian gas flows to Slovakia only partially or stops flowing completely, any other alternative will be significantly more expensive. If the company were to lose Russian deliveries and purchase the entire required volume from another source and physically transit it to Slovakia, it would cost it at least 140 million euros more.

Slovakia is waiting for Russia's and Ukraine's decision on gas transit in 2025, but would be happy to get gas from Azerbaijan, Slovak President Peter Pellegrini said in an interview with Azerbaijan's Report agency.

Slovakia highly values Azerbaijan's role in ensuring Europe's energy security, he said.

The expiration of the contract between Russia and Ukraine on gas transit to Europe on December 31, 2024 has put Slovakia in a difficult position, Pellegrini said.

The final decision on whether Russian gas will continue to flow through Ukraine to Europe will be made by Russia and Ukraine, he said. Russian gas transit will hopefully continue after January 1, 2025, but Slovakia would also be very pleased if there would be transit of gas from Azerbaijan, Pellegrini said.