Ukraine’s gas transmission system operator has entered talks with its Lithuanian counterpart Amber grid over the possibility of using the 2.9 Mt/year Klaipeda LNG terminal in Lithuania. It would require either a swap deal with Russia gas or to wait for completion of the Gas Interconnection Poland-Lithuania (GIPL), which is scheduled by end-2021. In addition, Ukraine is currently negotiating an agreement with US authorities which could lead to the delivery of 6-8 bcm/year of US LNG at Poland’s 3.9 Mt/year Swinoujscie import terminal.
In December 2019, Russia, Ukraine and the European Commission singed a new gas agreement that started on 1 January 2020. Ukraine is an important transit route for Russian natural gas to Europe through the Ukrainian Gas Transmission System (GTS). Ukraine has significant interconnection capacities with Russia (import capacity of 246 bcm/year and export capacity of 32.5 bcm/year). The volume of Russian gas transiting through Ukraine reached 87 bcm in 2018 (-7% compared with 2017).
The ongoing conflict between the two countries led Ukraine to stop purchasing Russian gas in November 2015. Ukraine relies on its gas stocks and has managed to diversify its supply routes with imports from EU countries (Poland, Hungary and Slovakia). Russia is currently developing two gas pipelines, Nord Stream 2 and TurkStream, aimed at circumventing Ukraine.
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