: :inin Kyiv (EET)

Italian company ready to invest $2 bln in Ukraine`s new gas transportation system operator

National oil and gas holding company NJSC Naftogaz of Ukraine plans to complete negotiations with a potential investor for establishing PJSC Trunk Gas Pipelines of Ukraine in the next three months, according to the online newspaper ZN.UA.

See also: Large gas field discovered in Ukraine on Black Sea shelf

Participants in the negotiation process say Italy-based Snam has major chances to win competition. The company is reported to be interested in importing Russian gas, ZN.UA journalists report.

”According to ZN.UA, Slovaks are also interested. However, it is the Italian company that is ready to invest $2 billion in the Ukrainian gas transportation system [GTS], and most importantly, to ensure that the Ukrainian GTS is loaded, amid Gazprom threats to halt gas transit after the so-called transit contract with Naftogaz expires December 31, 2019,” the publication said.

At the same time, the Italian company`s close ties with Gazprom are deemed to be alarming, and should be taken into account, considering the potential turning of Snam into a ”Trojan horse,” the article reads.

See also: Gazprom violates contractual terms, reducing gas pressure at entrance to Ukraine`s gas transport system

In October last year, it was reported that two European companies from Italy and Slovakia were ready to take over the Ukrainian trunk gas pipelines. They provided commercial offers, noting the terms of their engagement as operators of the Ukrainian GTS. To pursue cooperation, Ukraine needs to restructure management of the trunk gas pipelines into a separate entity.

As UNIAN reported, in 2015 the Ukrainian government initiated the reform of NJSC Naftogaz of Ukraine to fulfill the requirements of the Third Energy Package of the European Energy Community, which assumes differentiation of functions of extraction, transportation, and supply of fuel to end consumers.

As part of this reform, on November 9, 2016, Ukraine`s Cabinet of Ministers decided to create a new company, the GTS operator, PJSC Trunk Gas Pipelines of Ukraine.

See also: No peace deal with Gazprom to come in Stockholm arbitration – Naftogaz CEO


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