Bratislava – Ongoing discussions among the European Commission (EC) working group regarding the potential resumption of gas transit through Ukraine show a lack of consensus among the Commission’s leaders. Energy Commissioner Dan Jorgensen has expressed skepticism regarding the likelihood of resuming transit, while EC President Ursula von der Leyen stated that Slovakia, in collaboration with the EU executive and Ukraine, will make every effort to reinstate gas transit through Ukraine. Economy Minister Denisa Saková (Hlas-SD) emphasized on Monday, as reported by TASR, that restoring transit could significantly lower gas prices across Europe.
“We have consistently maintained that this would benefit not just our region, particularly Slovakia and Austria, but the entire European Union, as the competitiveness of the EU lags behind expectations compared to other nations,” Saková remarked.
The Minister of Economy referenced a Goldman Sachs study indicating that gas prices could fall from over 40 euros per megawatt-hour (MWh) to approximately 22 euros/MWh following the resumption of transit. “This could provide a much-needed boost to the competitiveness of the European Union,” Saková added.
Furthermore, she noted that reduced gas prices would specifically benefit Slovakia and Austria, which currently face higher costs due to their locations at the end of transport routes. Although the European Commission has advised Slovakia to explore alternative transport routes, Saková pointed out that these routes are largely utilized by the countries they traverse.
Currently, the Slovak gas company SPP has released additional capacity on the southern route through Hungary. From April, Russian gas imports for SPP are expected to increase substantially, ensuring adequate supplies for Slovak customers during the upcoming heating season. However, initiatives to augment the capacity of Turkstream or boost production in places like Azerbaijan face significant investment hurdles, estimated at billions of euros. According to Saková, the EU does not currently plan to support such investments in its strategy. (March 31)
“We have consistently maintained that resuming the transit of natural gas through Ukraine would benefit not only our region, particularly Slovakia and Austria, but the entire European Union, as the competitiveness of the EU lags behind expectations compared to other nations.” Denisa Saková.
Leave a Reply