Slovakia’s state-owned oil company, Slovenský plynárenský priemysel (SPP), has entered into a short-term pilot agreement to purchase natural gas from Azerbaijan. This move comes as Slovakia prepares for the potential disruption of Russian gas supplies via Ukraine, according to a report from Reuters.
Ukraine has announced that it does not plan to renew its five-year pipeline transit deal for natural gas supplies to European Union (EU) countries when it expires on December 31, 2024. EU energy chief Kadri Simson also indicated that the European Commission is not interested in renewing or extending the agreement.
The EU has warned its member countries to brace for a future without Russian gas, as Ukraine accounts for about 5% of the EU’s total gas imports. Aura Sabadus, a senior analyst at the market intelligence firm ICIS, told Politico that Austria, Hungary, and Slovakia are likely to be the most affected when these imports are cut off.
In response, Russia has expressed willingness to continue gas supplies to Europe via Ukraine, provided Ukraine and the European nations involved can reach an agreement. Russian Deputy Prime Minister Alexander Novak, responsible for the country’s energy policy, stated that European nations benefiting from the current transit route are keen to maintain cooperation. However, he noted that the decision depends largely on negotiations between the gas users and Ukraine.
Meanwhile, Turkey has offered to increase its natural gas exports to the EU, aiming to reduce its reliance on Russian gas. However, this would require re-exporting Azerbaijani gas through Turkey, a process that could become expensive and complicated. To make up for the shortfall, Turkey would need to import more Russian gas. While Ankara is eager to play a central role in Europe’s energy strategy and increase its influence with Brussels, it has said it requires demand guarantees before investing in the infrastructure necessary for such a shift.
Related Topics:
- U.S. Natural Gas Prices Surge More Than 10% After Hurricane Rafael Strikes
- UAE Energy Giant Increases Natural Gas Supply and Investments
- Guyana and Suriname Set for LNG Export Surge