EU considers new gas supply scheme for Ukraine, Hungary, Slovakia, and Moldova

The option assumes that gas will be pumped into Ukraine's storage facilities so that it can be used in these 4 countries.

According to the sources, it is about 10 billion cubic meters, 1 billion of which may be for the needs of Moldova, and the rest to be distributed among Ukraine, Slovakia, and Hungary. It can be any gas, including American LNG. In 2022 and 2023, the EU has already discussed the option of centralized gas purchases to reduce dependence on Russian energy.

In this case, Ukraine would be able to pay for gas at the expense of the Ukraine Facility program. This option is being considered.

Also, the prospect of reducing transit tariffs in some EU countries, through which gas goes to Hungary and Slovakia, is being discussed.

“Europe is very interested in that - such a scheme will remove many of the questions that the Slovakians ask the European Commission about the increase in gas prices after the termination of transit through Ukraine,” said a source familiar with the discussion.

While preparing a decision on a new gas supply scheme, Ukraine may consider reducing its tariffs, in particular for gas entry/exit to the GTS and for its storage.

As for the safety of gas storage in Ukrainian UGS facilities, which are periodically shelled, there is an opinion that if gas is stored there for Hungary and Slovakia, the risks of attacks on UGS facilities will decrease.

Ukraine intends to increase natural gas imports next season, as its own production facilities have been damaged by Russian drones and missiles. According to Bloomberg, the government estimates that it will need about 3.5 billion cubic meters of imports to meet domestic demand.