In 2018 Gazprom failed to fulfill its obligations under the gas transit contract

Since the beginning of 2018, Gazprom consistently violates technical conditions of the contract with the Naftogaz Ukraine. The pressure at the entry point in the gas transmission system at the Russian-Ukrainian boarder have never reached the contractual level agreed and signed with the Gazprom.


According to the contractual obligations the pressure in the Russian gas transmission system (GTS) at Sudzha gas metering station (GMS) have to be kept in a range between the 60-65 atm. However, the actual pressure throughout the year delivered by the Russian side was 51-59 atm, as have been reported by the Ukrtransgaz dispatcher department for the period from January 2018 until the end of February 2018.


During the past five years, Ukrtransgas repeatedly reports on continuous violations of the transit contract by Gazprom. European Commission’s monitoring group was also regularly updated on risks connected to the stability of gas supply to the European consumers.   


Source: Ukrtransgaz


Moreover, the analysis of all gas transportation routes of Russian gas to the EU including Yamal (Russia-Belarus-Poland-Germany) and Nord Stream (Russia-Germany: on the bottom of the Baltic Sea) shows almost 100% exploitation of their capacities. Opposite, the Ukrainian GTS is mainly used not as a priority route but for balancing gas supplies to the EU.


Such approach on making daily nominations on gas transit through the territory of Ukraine violates the conditions of the existing contract. Thus, to maintain stable gas supply to European Union Ukrainian side has to involve additional production resources and pay unplanned costs. 


Source: Ukrtransgaz, ENTSOG for the past 6 month (September2017 - February 2018)


"Considering the Gazprom's continued violation of the technical terms of the contract, Ukrtransgas makes every effort to ensure timely and complete transportation of Russian gas to the EU. It is only possible to fulfill such unstable nominations we get from Gazprom due to the flexibility and considerable capacity of the Ukrainian GTS, and craftsmanship work of our dispatcher department", - said Sergey Makogon, Director of Strategy and Business Development at PJSC Ukrtransgaz during his speech at the Ukrainian Energy Forum 2018.