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    WSJ: Ukraine's Naftogaz Signs Pipeline Deal with Slovakia

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Summary

Ukraine's state-owned oil and gas company Naftogaz signed a pipeline access deal with Slovakia's Eustream

by: Sruthi

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Press Notes

WSJ: Ukraine's Naftogaz Signs Pipeline Deal with Slovakia

Ukraine's state-owned oil and gas company Naftogaz signed a pipeline access deal with Slovakia's Eustream on Monday, bringing Kiev's energy independence from Moscow a step closer and paving the way for talks on a wider-ranging deal to wean Ukraine off Russian natural gas sales completely.

Eustream and its Ukrainian counterpart Ukrtransgaz, owned by Naftogaz, agreed to allow Ukraine to use a 20-year-old but never used pipeline on Slovakia's eastern border with Uzhhorod in western Ukraine. The deal would provide Ukraine with an initial 3 billion cubic meters of gas annually before being increased to 10 billion cubic meters some time next year.

Eustream's Chief Executive Tomas Marecek said eastbound gas deliveries to Ukraine can start this autumn, after the company tests pressure capacity in the pipe, builds a new connector to a compression station and installs a metering system.

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