Russia`s gas monopoly Gazprom has concluded framework agreements with gas transport operators of the two countries on long-term capacity reservation. The deals are not yet binding, but they should be the basis for future contracts for Nord Stream 2 gas pipeline, according to Kommersant publication.
Russia`s Gazprom is preparing to redirect gas flows in Central Europe from the Ukrainian transit to the Nord Stream 2 trans-Baltic gas pipeline, Kommersant reports.
Gazprom Export has concluded framework long-term agreements on gas transit through the Czech Republic (until 2040, operator Net4gas) and Slovakia (until 2050, operator Eustream) for EUR 5 billion and EUR 5.3 billion respectively, the publication said.
The company explained that the amounts and terms are just ”indicative,” while the agreements are non-binding.
”Such deals are concluded by all market participants in accordance with the requirements of the operator,” Gazprom Export specified.
Determining the approximate dates and amounts is required under Russian Federal law No. 223-FZ on procurement of state-owned companies. The sums cannot be calculated accurately now since the European operators of gas transmission systems (GTS) do not set tariffs for such a long period.
Nevertheless, these agreements are associated with the preparation of Gazprom for the conclusion of new long-term contracts for gas transportation to the EU via projected Nord Stream 2.
It should be noted that Gazprom Export has reserved new capacities for gas supplies to Germany (58 billion cubic meters a year at the entrance), Czech Republic (about 45 billion cubic meters) and Slovakia mainly for the period from October 1, 2019 to 2039. Gas transportation contracts are to be signed after these capacities are created, namely the Eugal gas pipeline in Germany and the GTS extension in Czech Republic and Slovakia. Local regulators should approve the construction of the facilities that will be funded by operators. Gazprom pledged to pay a fare for the pumping.
Nord Stream-2 project involves the construction of two strings of a gas pipeline with a total capacity of 55 billion cubic meters of gas a year from the Russian coast via the Baltic Sea to Germany. A new pipeline is expected to be built next to Nord Stream.