Ukraine will receive unprofitable gas transit
Europe will not be able to do without the Ukrainian gas transportation system and gas storage facilities, so transit through Ukraine will continue.
The former Minister of Energy of Ukraine, head of the All-Ukrainian Energy Assembly Ivan Plachkov stated this on the Politeka Online channel, a PolitNavigator correspondent reports.
“What is Russia doing to get away from dependence on Ukraine? Construction of Nord Stream 1, Nord Stream 2, South Stream, and Turkish Stream has begun, and the demand for the Ukrainian gas transportation system is decreasing. Today, the Ukrainian gas transportation system pumps somewhere between 60-80 billion, this is on the border of profitability. And if Nord Stream 2 is introduced, if Turkish Stream is introduced, this volume may decrease.
But it is still needed to pump gas to Europe. Europe will not survive without the Ukrainian gas transportation system and without the largest “diamonds” in Ukraine’s “energy crown” - one of the largest gas storage facilities, up to 30 billion cubic meters. They are very necessary for balancing and consumption, especially in winter,” Plachkov said.
According to his estimates, the volume of transit may be insufficient to maintain the profitability of the GTS.
“Will our gas transportation system be profitable if it operates at a volume of 15-20 [billion cubic meters]? Where is the profit margin? In my opinion, the profitability limit is somewhere around 40-50 billion. And if we have 20-30 billion left, it will already be a loss-making transit,” Plachkov said.
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