Naftogaz planning to cut Russia gas purchase to 18 billion cu m in 2014

National joint stock company Naftogaz of Ukraine plans to cut to 18 billion cu m the purchase of Russian gas from OJSC Gazprom in 2014.

The department for production of traditional and alternative energy of the Energy and Coal Industry Ministry responded to the Ukrinform information inquiry.

“According to the terms of the contract between OJSC Gazprom and NJSC Naftogaz of Ukraine of January 19, 2009, on the purchase/sale of natural gas in 2009-2019, the annual contract volume of gas is set at 52 billion cu m (but the parties may come to an agreement about reduction of the volumes no later than half a year before the start of the relevant supply year), and the minimum annual volume is 41.6 billion cu m. However, gas volumes to be sold by Naftogaz within the frames of contracts concluded with consumers on the domestic gas market for 2014 are considerably less. Therefore, Naftogaz has to raise an issue about reduction of the contract volume of supplies to Ukraine to 18 billion cu m next year,” a statement reads.

The Energy and Coal Industry Ministry noted that Naftogaz, starting with May 2013, had repeatedly approached the Russian side with proposals to adjust gas supply for 2014 to the amount of 18 billion cu m and to sign a relevant additional agreement to the gas contract. However, the company failed to get the Gazprom consent until now.

To remind, in 2012, NJSC Naftogaz has purchased about 25 billion cu m of Russian gas. Over January-July 2013, 12.5 billion cu m of natural gas came to the Ukrainian gas transportation system from the Russian Federation - 6.3 billion cu m or 34% less against the same period of the previous year.

OJSC Gazprom is the main supplier of imported gas to Ukraine today. Ukraine also purchases gas from German RWE Supply & Trading - supplies are performed via Poland, Hungary and Slovakia.