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Kyiv will host an international conference on Nov. 5–6 where Ukraine and the European Commission will sign an Intergovernmental Memorandum for the Adriatic Gas Corridor, which will strengthen the Europe s energy security, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Ukraine plans to implement this project together with the European partners — Croatia and Hungary. According to EU Energy Commissioner Gunther Oettinger, the parties have already agreed the last details. "The new pipeline system is designed to link the supply and reverse supply, it will work in our common interest, for Ukraine’s integration into the European internal market," Guenther Oettinger said.
Ukraine’s Minister of Energy and Coal Industry Eduard Stavitskiy said that the Adriatic Gas Corridor would supply natural gas from the LNG-terminal, which is currently under construction on the island of Krk in Croatia. The gas will be transported via Hungary to the Ukrainian underground gas storages (UGS).
Gas storage capacity will be expanded from the current 32 billion cubic meters to 50 billion cubic meters. "This is a very important step not only for the diversification of routes to Ukraine, but also to strengthen the energy security of the entire Europe," Stavitskiy said.
The Energy Strategy of Ukraine till 2030 includes plans to diversify gas supply and create competitive conditions on the domestic market. For this, the government has stepped up implementation of several projects with foreign partners. They involve supply of gas from Europe using the existing infrastructure in the reverse direction (from Germany — Czech Republic — Slovakia or Turkey — Bulgaria — Romania). Construction continues on the terminal on the Black Sea coast, which will receive tankers with liquefied natural gas from Egypt, Algeria, Qatar and the Caspian region. Also, the talks are underway with Azerbaijan on construction of the gas pipeline "White Stream."
All these projects will promote competition among suppliers on the Ukrainian gas market and, thereby, reduce the price by increasing the number of traders. It will be also of benefit for consumers in the European Union, who will be able to use the Ukrainian route to diversify gas supplies to their advantage.
This, in turn, will attract new transit gas flows to maximize utilization of the Ukrainian gas transport infrastructure.
The Ministry of Energy and Coal Industry estimates that by 2020, due to imports diversification, the gas supplies to Ukraine from one source will be reduced to 35% of total consumption and by 2030 to below 35% of total gas imported into the country.
Given the significant potential of the Ukrainian GTS, the government intends to implement a set of measures to create a gas hub, which will play a key role in ensuring the stable operation of the European energy market.