On December 1, Azerbaijan’s state oil company, SOCAR, initiated natural gas supplies to Slovakia’s Slovenský plynárenský priemysel (SPP), the country’s largest state-owned energy operator. This move follows a short-term pilot contract signed between the two parties just a month prior, as SPP prepares for a potential disruption in Russian gas deliveries through Ukraine.
Ukraine recently signaled its intention not to renew its five-year pipeline transit agreement with the European Union (EU) when it expires on December 31, 2024. EU energy chief Kadri Simson also stated that the EU executive has “no interest” in reviving the agreement.
As part of its contingency planning, the EU has urged member states to prepare for a future without Russian gas. Currently, Ukrainian gas exports account for 5% of the EU’s total gas imports. According to Aura Sabadus, a senior analyst at market intelligence firm ICIS, Austria, Hungary, and Slovakia are expected to be the hardest hit by any reduction in imports.
In response, Russia has expressed its willingness to continue gas deliveries to Europe via Ukraine, provided that Kyiv and the relevant European countries reach a new agreement. Russian Deputy Prime Minister Alexander Novak, who oversees the country’s energy policy, emphasized that European countries reliant on this transit route are keen to maintain cooperation, but negotiations must occur directly between the involved parties.
“We are ready to supply gas, but the outcome doesn’t depend solely on us; it’s up to the users and the country facilitating the transit,” Novak said.
Meanwhile, Turkey has announced its readiness to significantly boost natural gas exports to the EU as part of efforts to reduce dependency on Russian supplies. However, this would require Turkey to re-export Azeri natural gas, necessitating increased imports of Russian gas to fill the gap. While Turkey is eager to enhance its role in the European energy market, it seeks assurances from the EU before investing in the required infrastructure.
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