Gazprom, Naftogaz Ukrainy meet to discuss possible merger, development of single gas transmission system

Source: Gazprom

Gazprom hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Yury Boiko, Ukrainian Fuel and Energy Minister. 

The parties discussed the issues related to the Russian Prime Minister’s proposal to merge Gazprom and NAK Naftogaz Ukrainy. 

“On April 30 Vladimir Putin, Prime Minister of the Russian Federation made a proposal to the Ukrainian party in Sochi that Gazprom and NAK Naftogaz Ukrainy should merge. Today this proposal has been discussed in detail. 

The idea of merging Gazprom and Naftogaz Ukrainy is absolutely pragmatic. It is stipulated by the common development history of the gas industry in our countries, in particular – a single gas transmission complex dating back to the USSR. Therefore, it is natural that the Ukrainian gas transmission system (GTS) upgrade should be closely linked to Russia’s Unified Gas Supply System development. 

The GTS was initially set up for the purpose of Russian gas transmission to Europe. As you know, the pipe is a valuable asset in case it is filled with gas. 

However, the merger proposal is not related to the idea of creating a trilateral gas transmission consortium embracing Russia, Ukraine and European companies. This proposal is different and more global, it is of a larger scale. 

I am sure that the merger of the two companies will become an important step towards the European energy security enhancement and diversification of the routes for Russian gas supply to Europe. Therefore, our plans to construct the South Stream are intact. It is planned that until December 31, 2015 considerable gas transmission capacities will be created for Russian gas delivery via a new export corridor,” said Alexey Miller after the meeting.

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