Ukraine offers Europe 55 bcm of additional gas transit under 'special conditions' - NSDC secretary

KYIV. Oct 22 (Interfax) - Kyiv has offered Europe additional gas transit, 55 billion cubic meters in total under special terms and conditions, Secretary of Ukraine's National Security and Defense Council (NSDC) Oleksiy Danilov said.

"The government of Ukraine will act together with Naftogaz Ukrainy and Gas Transmission System Operator of Ukraine LLC to determine the special terms and conditions for the transport of additional volumes of natural gas by the Gas Transmission System of Ukraine to EU member countries, totaling no less than 55 bcm per year," Danilov said.

The existing contract with Gazprom implies the transport of 40 bcm via the Ukrainian Gas Transmission System to Europe, but the system's potential capacity allows for transit of far larger quantities, especially in this ongoing crisis period, he said.

As reported earlier, Naftogaz and Gazprom signed a contract for organizing transport, Naftogaz signed a contract with the new operator Gas Transmission System Operator of Ukraine LLC, and the latter signed an inter-operator agreement with Gazprom on December 30, 2019, following trilateral gas talks among Russia, Ukraine, and the EU.

The existing contract stipulates transit of at least 65 bcm of Russian gas in 2020, which translates to 178 million cubic meters in daily terms. A total of 40 bcm in gas transit will go via Ukraine each year. Payment for this volume is guaranteed and remains due even if less gas is transmitted via the Ukrainian Gas Transmission System.