The SPP company from Slovakia announced that it is ready to stop Ukrainian transit. It signed a trial short-term gas supply contract with the Azerbaijani company SOCAR.
Points of attention
- The signed trial contract for the purchase of gas from Azerbaijan shows Slovakia's readiness to stop Ukrainian transit.
- Slovak company SPP has diversified its gas supply routes, including a pipeline from Germany through the Czech Republic and a southern route through the Turkish Stream pipeline.
- Termination of transit through Ukraine may lead to a significant increase in the costs of the SPP company for the purchase and transportation of gas.
- Ukraine does not plan to sign a new transit contract with Gazprom, which opens the possibility for an agreement with a third party, for example, with Azerbaijan.
The Slovak state company signed a pilot contract for the purchase of gas from Azerbaijan
"Due to the high risk of disruption of the gas supply through the eastern pipeline, we are taking measures to ensure the reliability of supply to our customers - from large industrial enterprises to households - under all circumstances," said SPP CEO Wojtech Ferenc.
SPP reported that Slovakia has also diversified its supply routes in case transit through Ukraine is stopped. Alternative routes include a pipeline from Germany through the Czech Republic.
The statement also emphasizes that in case of termination of transit through Ukraine, the southern route through the Turkish Stream pipeline in the Black Sea will play an important role. It will be possible to transport part of the gas from Russia or Azerbaijan in this way.
It is also noted that in the event of a stoppage of supplies through Ukraine, additional measures will be applied to ensure security, although this will lead to an increase in costs.
If the company loses supply from Russia and is forced to purchase the necessary volume from another source and physically transport it to Slovakia, it will cost at least 140 million euros more, SPP said.
What preceded it
The transit contract with Gazprom, which was concluded at the end of 2019, expires on January 1, 2025. According to him, Gazprom should pay for pumping 40 billion cubic meters of gas per year, but with the start of a full-scale war, it pumps about 15 billion cubic meters.
Ukraine receives about 800 million dollars for transit, while Russia earns up to 5 billion dollars a year.
Ukraine is not going to sign a new transit contract with Gazprom, but negotiations are underway to conclude a contract with a third party. In this case, Azerbaijan can become a supplier of gas.
