By Nina Chestney
LONDON (Reuters) -Ukraine has said it will not extend a five-year deal with Russia's Gazprom on the transit of Russian gas to Europe when it expires at the end of the year, but alternatives are being explored.
Since the Ukraine war, Norway has overtaken Russia to become Europe's top pipeline gas supplier and the EU has increased liquefied natural gas (LNG) imports from the U.S. and other countries.
WHAT IS THE UKRAINE GAS TRANSIT ROUTE?
The Ukraine gas transit route, agreed upon by Moscow and Kyiv in 2019, enables Russia to export gas to Europe via Ukraine.
According to Ukraine’s gas pipelines operator, Russian gas transit via Ukraine to Europe fell by 28.5% to 14.65 billion cubic metres last year in from 20.5 bcm in 2022.
Two entry points exist: Sokhranivka and Sudzha, but Ukraine declared force majeure and halted flows through Sokhranivka in 2022. The system connects Poland, Slovakia, Hungary, Romania, and Moldova.
WHICH COUNTRIES RECEIVE GAS VIA THE ROUTE?
Most EU nations have lessened their dependence on Russian gas due to the Ukraine invasion. Former main recipients of gas via Ukraine include Austria, Slovakia, Italy, Hungary, Croatia, Slovenia, and Moldova. Austria still receives most of its gas via Ukraine, while others have diversified their sources and taken steps to reduce demand.
Moldova, one of Europe's poorest countries, last year sourced all its gas from European markets, leaving available gas from Gazprom for its breakaway eastern region, Transdniestria.
Croatia's imports are now minimal and Slovenia's have dropped to near zero after its main gas supplier Geoplin's contract with Gazprom ended last year, a study by the Center on Global Energy Policy at Columbia University said.
HOW CAN GAS VIA UKRAINE BE REPLACED?
EU energy commissioner Kadri Simson said an analysis has shown that alternative supply sources exist.
Austria can import from Italy and Germany, and its utilities have said they have taken precautionary measures if Russian gas supply stops.
Hungary has been relying on Russian gas from an alternative route: the TurkStream pipeline, and Slovenia gets its gas from Algeria and other sources. Italy receives most of its gas through a route which facilitates Azeri Gas imports and from Algeria.
ARE THERE OTHER OPTIONS FOR UKRAINE TRANSIT?
Slovak gas supplier SPP said a consortium of European gas buyers could take over the gas on the Russia-Ukraine border when the transit contract expires, but it is unclear how this might work.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited, SPP told Reuters.