The future of Ukraine's gas transit is increasingly in the spotlight, and not just for gas traders. The transit contract between Gazprom Export and Naftogaz Ukraine ends at the end of December this year. If gas flows through Ukraine come to a standstill as a result, Europe will lack around 135 TWh of natural gas. As absurd as it may seem, gas flows through Ukraine to the Ukrainian-Slovak border point of Velke Kapuzany have remained stable since the start of the war in Ukraine (green area in Figure 1). Gazprom Export uses the volumes to fulfil longterm supply contracts mainly with customers in Austria, Slovakia and the Czech Republic. Volumes also continue to flow to Italy.
What is clear is that there will be no new medium or long-term agreement under mediation of the EU Commission as at the end of 2019. The EU Commission already ruled this out in February. No interconnection agreement, no transit? In the editorial of the February edition (ener|gate Gasmarkt 02/24), I wrote somewhat casually that it was all very simple and that a new transit agreement is not needed. The capacity could be booked on the Hungarian capacity platform RBP in accordance with the European rules on capacity allocation. You, dear readers, may remember that in 2020 Gazprom Export repeatedly booked – or did not book – monthly capacity on the platform for the Russian- Ukrainian entry point Sudzha. Traders and analysts watched the platform on the auction days, and the results caused gas trading prices to rise or fall. [...]