Germany plans to supply natural gas to Ukraine

15 Apr 2014

German energy concern RWE on Tuesday began natural gas supplies from Europe to Ukraine, the company's press service has reported, – according to ukrinform.ua.

"RWE AG - via its trading and gas midstream arm RWE Supply & Trading – is the first European supplier to commence gas deliveries to Ukraine in 2014. Today RWE re-starts gas deliveries to the state-owned company Naftogaz of Ukraine from its pan-European portfolio," reads the report.

According to the German company, the gas flows via Poland to Ukraine. These supplies are governed by the existing five-year framework agreement between Naftogaz and RWE Supply & Trading signed in May 2012, which foresees deliveries of up to ten billion cubic meter (bcm) of natural gas per year subject to individually agreed contracts. In 2013, RWE Supply & Trading has already delivered about 1 bcm to Naftogaz. "RWE's deliveries to Ukraine are based on European wholesale price levels including delivery costs to Ukraine," reads the report. RWE said that further significant volumes could be delivered to Ukraine if various transport restrictions at the Slovakian-Ukrainian border are politically and technically resolved within the next weeks or months.