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Source: Alternative Transbalkan Gas Route excludes Russian Supply to Ukraine

A Ukrainian industry source familiar about the issue said Wednesday that an alternative Transbalkan route to import gas for Ukraine was developed, which allows for cheaper imports of Russian-origin natural gas.

Source: The route is operational as of June. It could allow Ukraine imports up to 1 billion cubic metres (bcm), including 100 million cubic metres (mcm), in the lucrative period from June to October.

Ukraine imports its gas through Poland, Slovakia, and Hungary.

Ukraine, once one of the biggest importers of Russian Gas, has stopped buying it since 2015. In January, Ukraine stopped transiting Russian gas to Europe through its territory.

Ukrainian officials had previously stated that Kyiv wouldn't allow gas purchases from countries at war with Ukraine.

Last month, Ukraine's energy regulator approved a mechanism for gas imports that will eliminate the high transit charges of gas transported through the Transbalkan Pipeline from Greece to Ukraine.

The source stated that "the planning (of the gas shipping via Transbalkan Pipeline) took into consideration the condition that natural gases can be supplied to Greece's entry point from Greek LNG Terminals or through the TAP pipeline using Azerbaijani Gas or reverse flow from Italy."

He added, "This minimizes the possibility of gas being transported from Russia." All parties involved in the project were on board with the decision (to exclude Russian gas).

Gas imports are expected to reach 7 mcm per day.

He added that "the cost of this route can be competitive with other routes for gas imports into Ukraine."

Analysts and former officials estimate that the imports will be around 6.3 billion cubic meters. The Kyiv Government has stated that Ukraine must import at least four billion cubic metres of gas to meet the needs for the 2025/26 heating seasons. (Reporting and Editing by Bernadette B. Baum)

(source: Reuters)