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    Naftogaz Questions Gazprom Daily Transit Order

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Summary

Naftogaz will fulfil a 58% increase in Gazprom’s daily transit order to the EU despite Gazprom not providing advance compensation according to the contract

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Natural Gas & LNG News, News By Country, Russia, Ukraine

Naftogaz Questions Gazprom Daily Transit Order

Naftogaz reports that Gazprom has requested a significant increase in gas transit to Europe.

In a statement issued Thursday evening, Naftogaz said Gazprom has nominated 174.3 million cubic meters (mcm) of gas for transit by Naftogaz tomorrow (March 6).  By comparison today (March 5) Gazprom’s transit order stood at 110.3 mcm. Accordingly, Gazprom’s order for transit to the European Union jumped by 58% in one day.

The Ukrainian side said that according to the existing technical agreement between the parties, daily volumes at the Uzhhorod station can fluctuate within a band of no more than ±4.5% while volumes through the other stations on the western border of Ukraine may deviate by no more than ±6.5%.

If Gazprom’s order on a given day exceeds the above stated fluctuations the Russian company is required to ensure that it either has sufficient amounts of its own gas in Ukrainian underground storage facilities or supplies the required extra volumes 36 hours before the expected fulfilment of the order. Gazprom does not store gas in Ukrainian underground storages and has not provided the extra volumes in advance.

The Ukrainian side said that it was not responsible for the execution of such an order if Gazprom has not made the correct arrangements for exceeding the maximum daily volume fluctuation. However, Naftogaz said that it intends to execute the order for March 6 in its entirety.