During 2020, Naftogaz of Ukraine NJSC rendered gas transit services to Gazprom PJSC (Russian Federation) with a total value of $2.11 billion.
In 2020, Gazprom fully paid for annual gas transit capacity provided by the Ukrainian GTS. According to the Agreement dated 30 December 2019 between Naftogaz and Gazprom (hereinafter Agreement), booking a capacity of 65 bcm per year costs $2.1 billion.
Naftogaz also provided Gazprom with additional gas transmission services amounting to $30 million in Q4 2020.
Russia’s gas transit totaled 55.8 bcm in 2020.
As reported earlier, according to the Agreement, Naftogaz serves as the gas transit organizer and books the necessary capacity with Gas Transmission Service Operator of Ukraine LLC based on Gazprom’s order.
The Agreement provides for the annual booking of Ukraine’s GTS capacity for transmission of Russian gas: 65 bcm in 2020 and 40 bcm per year for the period from 2021 to 2024. Guaranteed minimum revenue from organizing gas transmission services for Gazprom will exceed $7.1 billion over the five-year period.
Gazprom can also book and pay for additional capacity, as it did in Q4 2020.
NJSC Naftogaz of Ukraine