Naftogaz, RWE ink contract for 1 mcm gas per day in Nov-Dec
KYIV. Nov 1 (Interfax) - Ukraine's national oil and gas company Naftogaz Ukrainy and Germany's RWE have signed a contract for about 1 million cubic meters of natural gas per day during this and next month, according to a report in the weekly 'Zerkalo Nedeli. Ukraina' that cites company figures.
The gas will be delivered to Ukraine from Poland via Drozdovich, along one of the the gas pipeline stretches linking the two countries' gas delivery systems.
The paper writes that the price of the imported gas will be a bit lower than the price for Russian gas Naftogaz Ukrainy is buying from Gazprom under a long-term agreement.
Per the two-month contract, the signatories can discuss a long-term agreement for providing Ukraine with natural gas by reverse-direction pumping.
Early this May, Naftogaz Ukrainy and RWE Supply & Trading GmbH (RWEST) concluded a framework agreement for natural gas buys. That agreement lays out the legal grounds for possible RWEST natural gas deliveries. The price, delivery amount, and the parties' obligations are to be determined by separate contracts after they are coordinated and signed by the two companies.
Ukraine can import around 5 billion cubic meters (bcm) of natural gas under its deal with RWE, Energy and Coal Industry Minister Yuriy Boyko has said.
In light of Gazprom's plans and announcements about a significant reduction of Russian gas transit to Europe via the Ukrainian gas-transport system, Kyiv intends to use its transport capacity in a reverse direction. At the end of last month, senior engineer at Ukrtransgaz Oleh Mikhalevich said that the Ukrainian gas-transport system is prepared to receive in reverse up to 5 bcm of gas per year from Europe.
Experts reckon that Ukraine can buy on European spot markets and import through Slovakia up to 20 bcm of natural gas a year starting in 2015-2016.
