EU company has to be involved in Ukrainian gas transit – Naftogaz

The head of the oil and gas company National Joint-Stock Company (NJSC) Naftogaz of Ukraine, Andriy Kobolyev states that Ukraine needs to get a European company to manage its natural gas transportation system to keep its status as a transit country .

“The ultimate goal of the process of creating a separate GTS operator is to involve a European company… that has its own interests. In fact we want to share a part of our business to make them help us guarantee that transit through the territory of Ukraine will remain after 2019,” said Andriy Kobolyev on Channel 5 on Wednesday, January 4, 2017.

“It is my deep conviction that without a European company’s involvement in Ukrainian gas transit it will be very difficult to keep the business in Ukraine because there is a very strong competitor making the Europeans a very interesting offer: ‘let us build you another pipe at our cost.’”

The head of Naftohaz said that refusal of transit through the Ukrainian gas transportation system (GTS) would lead to an increase transit costs for Europe.

“The second step will be difficult for Europeans. If this happens and the Ukrainian gas transportation system ceases to be, then the gas from the bypass will go from cheap to expensive. You have to pay for everything one day but, unfortunately, not everybody understands it,” explained the head of Naftohaz.

3 companies showed their interest in management of GTS of Ukraine, and negotiating. In case of realization of projects of construction of two lines of Turkish stream and Nord stream-2, Russia will be able to abandon the gas transit through Ukraine’s GTS.

“In my opinion, without the involvement of European companies in Ukrainian transit, to keep it on the territory of Ukraine will be very difficult, because on the other hand there is a very powerful opponent who actually makes the Europeans very interesting offer, saying, let us for your money will build you another pipe,” − said Andriy Kobolyev.

See also: Gazprom plans the Nord Stream-2 pipeline and finances Turkish Stream pipeline

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