SG:Ukraine ink framework deal with RWE to diversify gas imports
Bloomberg reported that Ukraine state owned energy company NAK Naftogaz Ukrainy signed a framework accord with RWE AG for natural-gas imports as the country seeks to diversify supplies.
Naftogaz, based in the capital Kiev said the agreement with Germany’s second-biggest utility was signed this month and provides for the possibility of gas imports to Ukrainet. Separate contracts will be needed to specify volumes and price.
Mr Volodymyr Omelchenko an analyst at the Razumkov Center for Economy and Political Studies said that Ukraine relies on Russia for about 70% of its annual natural-gas use of 52 billion cubic meters and has been in talks since 2010 with Russia’s OAO Gazprom on cutting prices and volumes under an existing 10-year accord. To buy gas from RWE, Ukraine would need to arrange facilities to transport fuel from west to east.
He said that “Volumes of deliveries could be under 3 billion cubic meters into Ukraine. This is quite significant but not critical for Ukraine and won’t impact the policies of Gazprom on revision of the existing contract.”
