Ukraine needs to import at least 1 bcm of gas in 2025 - energy minister

MOSCOW. Feb 5 (Interfax) - Ukraine will have to import around 1 billion cubic meters (bcm) of natural gas or possibly even more before the end of 2025, Energy Minister German Galushchenko said.

"We need gas imports. There's no doubt about that. As for the volumes, let's see what stocks we will end this season with [...] We shall see. But I think that we will have to import at least 1 bcm before the end of the year. That's for sure. Or possibly even more," Ukrainian media quoted Galushchenko as saying.

"It's not exactly about this season, but because we need to fill our storage facilities for the next fall-winter season," he said.

In addition to its own funds, Naftogaz has available credit facilities, including a 200- million-euro one from the European Bank for Reconstruction and Development, Galushchenko said. He did not rule out that Naftogaz could receive grants for gas purchases and gas itself as grants.

"There could also be grant funds. We and partners are also discussing the possibility of giving us gas as a commodity via a grant. It will also be a way out," he said.

When commenting on gas prices, Galushchenko said that the company buys it at the price that is now in the market.

"All these stories that we should have purchased [gas] earlier are no longer relevant. It was even cheaper in the 1990s. Did we have to buy it back then?" he said.

Kiev has not received any proposals from the European Union regarding Russian gas transit through Ukrainian territory, Galushchenko said.

"No, there were no such proposals [from the EU on transit]. Slovakia is receiving Azerbaijani gas. It's 400 million cubic meters a month. But I think that Azerbaijan can increase this volume if need be," he said.

As reported, former Ukrainian Energy Minister Olga Buslavets said recently that Ukraine would have to import 2-3 bcm of natural gas in 2025 to cover its shortages.

Former head of the Gas Transmission System Operator of Ukraine Sergei Makogon said on February 3 that Naftofaz Group had urgently purchased around 150 million cubic meters (mcm) of gas from the EU at UAH 28,000 per cubic meter (without VAT) for February.

Makogon said on January 29 that gas stocks at Ukraine's underground gas storage facilities were gradually declining to the critical 10% mark, which would reduce possible withdrawals to 60 mcm per day, prompting the country to urgently import gas. Currently, Ukraine consumes 110 mcm of gas on average per day, he said. Of it, domestic production accounts for 52 mcm, while the rest 58 mcm should be taken from underground gas storage facilities and/or imported.

However, consumption may grow to 140-150 mcm per day in case of frosty weather, but the storage facilities can no longer provide 90-100 mcm due to their design conditions. Therefore, imports will be required, Makogon said.

Naftogaz said on the same day that it has sufficient gas stocks to stably get through the heating season and is also importing fuel. It declined to provide any details regarding these imports.