Eustream Signs Reverse Flow MoU, Ukrtransgaz Postpones to End April

Slovakia’s Eustream signed a Memorandum of Understanding for gas supplies to Ukraine, saying that reverse flow could happen as soon as October 2014, with a volume of 3.2 bcm a year. 

‘Later on, in March 2015, this capacity could be increased to as much as 8-10 billion m3 a year, which would greatly help Ukraine in its efforts to diversify gas transmission routes from the west,’ reads a note released by the company on Wednesday. 

Representatives of the company met colleagues from Ukraine’s Uktransgaz, Slovak Minister of Economy Tomáš Malatinský, Ukrainian Minister for Energy Yuriy Prodan and European Commission senior official Klaus-Dieter Borchardt. 

‘The Ukrainian partners postponed the signing of the Memorandum, whereby they will return to the issue on 28.4.2014 at the next meeting, which will take place in Bratislava. The Ukrainian side would prefer to use the main transit pipeline, which is employed for transporting gas to the European Union,’ adds the communiqué. 

Despite the signature, some doubts remain. Malatinský suggested that there is a contractual problem. 

“We want to help Ukraine and are ready to, but we have to do it in a way that Slovak and European interests are not sacrificed, because that gas flows to Europe. Even with all its alternative routes, Europe is still dependent on and needs the gas that comes to Europe via Eustream,” Malatinský said, adding that talks would continue. 

Uktransgaz’s shareholders recently changed company's management, appointing Igor Lohman as the new Chairman of the Board. According to a note released on Thursday, Lohman served as Chief Engineer in the Ukrainian company.