Naftogaz, SOCAR exploring prospects of storing Azerbaijani gas in Ukraine

Ukrainian company Naftogaz is negotiating with the State Oil Company of Azerbaijan (SOCAR) on the possible transit of Azerbaijani gas through Ukraine [to Europe] and its storage in this country, Naftogaz CEO Oleksiy Chernyshov said in an interview with a Ukrainian publication, Report informs.

He stated that Kyiv does not intend to extend the current five-year transit agreement with Russian Gazprom, which expires at the end of December 2024. As a result, the supply of 42 million cubic meters of Russian gas per day through Ukraine may be terminated.

Chernyshov added that the possibility of transiting Azerbaijani gas through Ukraine is being discussed with Baku, and SOCAR, as a producer, can offer its gas for these purposes.

“We do not rule out negotiations with other companies, with SOCAR. But we have no final contractual decisions. A mandatory condition for cooperation on our part is the storage of gas by SOCAR in Ukrainian storage facilities,” he said, adding that this issue is being discussed. At the same time, he believes that the more gas SOCAR agrees to store in Ukraine, the better.

“I will be glad if SOCAR stores gas with us. Our storage facilities are the largest in Europe with a capacity of 31 billion cubic meters. No more than half is needed for our own needs. The other part must be leased to generate income. Currently, the decision to store gas in Ukraine is influenced by certain factors - massive shelling of storage facilities in March, April and May of this year,” he added.

When asked whether transit gas could be Russian one, the head of Naftogaz said: “This is manipulation and populism. The gas business, especially the large one, often works through swaps.”