Operator Estimates 2% of GDP Due to Gas Transit Deal

This amount takes into consideration the loses incurred by the Turk Stream pipeline


Photo Ukrinform – UATV


Gazprom significantly reduced the gas transit volume since the beginning of 2020, executive director of Naftogaz Yurii Vitrenko said during a Naftogaz and GTSO joint press briefing on January 9, 2020, Hromadske reported.

However, the company handles the full amount, booked for transportation through the Ukrainian pipeline.

Gazprom booked capacity in the amount of 170 million cubic meters per day; however, the amount that has passed through Ukraine has been less than 100 million cubic meters on a daily basis so far in 2020.

“And although the system’s capacity wasn’t fully charged and the volume of transit was not significant, Gazprom is still obligated to pay for the contracted volume,” Vitrenko said.

The full payment is due to the recently agreed upon gas transit contract which aligns with the rules of the European gas market.

The new transit agreement secured “a macroeconomic impact in the amount of 2% GDP for the gas transit,” Head of GTSO, Serhiy Makohon said.

This amount is despite the fact that average loss in gas transit volumes for Ukraine in upcoming years is estimated at 15 billion cubic meters annually, which is roughly around $450 million per year.

According to Makohon, these loses are because of the implementation of the Turk Stream pipeline which can transit 15 billion cubic meters annually. As a result of this pipeline being operational, Ukraine has ceased to transit gas to both Bulgaria and Turkey.

Source Hromadske
date 09.01.2020
categories Economics
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