Too early for Ukraine to speak about forming gas hub using its underground storage facilities, says expert
Kyiv, October 2 (Interfax-Ukraine) – It is too early for Ukraine to consider forming a gas supply hub on the basis of its underground storage facilities, an expert at the Hungarian Institute of International Affairs, Andras Deak said at the press conference entitled "Energy Security in Central and Eastern Europe: In Search of a Common Approach" at Interfax-Ukraine on Tuesday.
"As for the hub, you have to have more [than storage facilities]. You have to have diversified sources of gas supplies, and in Ukraine there is one source now – Russian gas. You also have to remember about the legal base. You really can offer your underground storage facilities to Central European and other players as a hub, but I would not call this a hub – these are simply storage facilities,” he said.
The expert said that it is logical and proper to offer the services of the Ukrainian underground storage facilities to European companies.
"If you have empty facilities and one can rely on your services – this could arouse interest. This could be one of the steps required for the formation of an actual hub," Deak said.
As reported, the Ukrainian government plans to organize the Eastern-European gas hub on the basis of the Ukrainian underground storage facilities.
Ukrainian Energy and Coal Industry Minister Eduard Stavytsky said that Germany's RWE will be a first company out of European companies which will store gas in the Ukrainian underground storage facilities.
Ukraine has 13 underground gas storage facilities, with a total active gas storage capacity of more than 31 billion cubic meters.
Ukrtransgaz operates 12 gas storage facilities and a system of trunk gas pipelines, Chornomornaftogaz operat es one gas storage facility. Naftogaz owns 100% stakes in the companies.