Ukraine's New Gas Strategy: A Transbalkan Shift

Ukraine has developed a Transbalkan gas import route allowing for cheaper, Russia-free gas imports. Expected operational in June, this route could import up to 1 bcm of gas, avoiding high transit fees. Daily import capacity is set at 7 mcm, offering a competitive alternative amidst ongoing tensions.

Ukraine is set to activate a new Transbalkan gas import route in June, offering a cost-effective alternative for importing gas without relying on Russian sources. This strategic development could supply Ukraine with up to 1 billion cubic meters of gas during the June-October period, including 100 million cubic meters in June alone.

Having ceased Russian gas imports since 2015 and stopped its transit to Europe in January, Ukraine has been exploring alternative import options. Officials emphasize not dealing with nations engaged in conflict with Ukraine, aligning with the recently approved gas import mechanism avoiding high transit fees.

The new route utilizes the Transbalkan pipeline from Greece, integrated with Greek LNG terminals, the TAP pipeline for Azerbaijani gas, or reverse supply flow from Italy. Ensuring no Russian gas, the route offers a 7 million cubic meters daily capacity, competing with other gas import routes as Ukraine prepares for the next heating season's demands.

(With inputs from agencies.)