Gazprom Unlikely to Fulfill Transit Agreement with Eustream

In the period January-June 2012, Gazprom delivered to Velke Kapusany at the Ukrainian-Slovakian border about 26.4 bcm compared to 40.0 bcm in the same period of 2011. Deliveries to Germany via the Yamal-Europe pipeline dropped 1.1 bcm and Nord Stream transported about 5.2 bcm.

It is clear that Gazprom will be unable to fulfill its agreement with the Slovakian operator Eustream signed for the transit of more than 1 trillion cubic meters of natural gas in the period of 2008-2028.

The Nord Stream pipeline will be filled by gas currently shipped through Ukraine and Slovakia. In about three years, the transit of Russian gas through Slovakia is to drop another 90% from the current level. The commissioning of the South Stream pipeline will reduce the Slovakian transit to zero.

Source: East European Gas Analysis