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    Ukraine Doubled Gas Import From Europe, Halved Import From Russia in 2015



Natural consumption in Ukraine decreased by 25% in 2015 as gas imports from Russia declined more than 50%

by: Ya'acov Zalel

Posted in:

Natural Gas & LNG News, Slovakia-Ukraine Interconnector, Ukraine

Ukraine Doubled Gas Import From Europe, Halved Import From Russia in 2015

Ukraine doubled its natural gas import from Europe in 2015 to 10.3 billion cubic metres (bcm), according to Ukrtransgaz, the Ukrainian gas transmission company.

The majority of the gas imported, 9.7 bcm, was imported through the Slovak corridor. The rest was imported through Hungary (0.5 bcm) and Poland (0.1 bcm).

The increase in imports from Europe compensated for a drop in the level of gas imported from Russia, which amounted to 6.1 bcm in 2015. That figure is a massive decrease from the 14.5 bcm imported from Russia in 2014. Currently, Ukraine imports gas only from Europe at a capacity of 20.5 million cubic metres (mcm) daily.

Overall gas import to Ukraine in 2015 decreased from 19.6 bcm to 16.4 bcm, a decrease of 3.2 bcm or -16.3%. Ukraine's natural gas consumption also fell last year by 25% according to Ukrainian Prime Minister Arseniy Yatsenyuk.

"In the budget, we have kept the energy efficiency program with the aim of consuming less gas, paying less and planning our energy policy more efficiently," the prime minister said on Ukrainian television, according to Russian media outlet Sputnik. "And this policy has already proven its effectiveness in the course of this year. We reduced the volume of natural gas consumption by almost 25%. This is a real result, and we will carry on doing this in 2016."

In 2014, according to the U.S. Energy Information Administration, Ukraine consumed 42.5 bcm, of natural gas, domestically producing 47% (about 20 bcm) of that total. The remaining gas was imported mainly from Russia.

Currently the two countries are in a deadlock over gas pricing. Russia has offered Ukraine a purchase price for gas of $212 per 1,000 cubic metres while Ukraine is seeking a price lower than $200 per 1,000 cubic metres. Spot prices in Europe at present are about $180 per 1,000 cubic metres.