The potential capacity of a gas hub, based on underground gas storage facilities in Ukraine, to balance, store, redistribute and supply gas between Ukraine and the European Union could be some 20 billion cubic meters (bcm), Board Chairman of the national joint-stock company Naftogaz Ukrainy Andriy Kobolev has said.

He said that the realization of the project will allow for increased stability in the operation of Eastern European gas transit systems.

Kobolev said that the first step for creating the hub was the agreement signed between Ukrtransgaz and Poland's Gaz-System, on cooperation in the creation of a feasibility study on a project uniting the Polish and Ukrainian gas transport systems.

Ukraine has a large capacity for storing gas on its western borders, and the creation of a hub will allow for balancing the gas supply to many European countries, primarily Poland, Slovakia, Hungary and Romania.

"The project could use supplies from Russia, the European spot market, Poland and other sources. The Eastern European gas hub will promote the creation of an all-European flexible infrastructure for gas deliveries, which will unite Western, Central and Eastern Europe, and the Baltic countries," reads the report.

The project will further the integration of Ukrainian and EU gas transport systems, and will strengthen Ukraine’s importance in boosting energy security in Europe.