You're reading: Azarov: Ukraine might mothball part of its gas transport system

Yalta, Sept 19 (Interfax-Ukraine) - Ukraine might mothball part of its gas transport system to cut its losses in the absence of clear confirmation of the volumes of natural gas to be transported across its territory to Europe, Ukrainian Prime Minister Mykola Azarov has said.

"The Ukrainian gas transport system’s annual capacity is 150 billion cubic meters of gas, including three pipes each having capacity of 50 billion cubic meters, while only about 80 billion cubic meters are pumped through it. Perhaps we should mothball part of it. Why should we be incurring losses?" Azarov said at a press conference at the eighth Yalta Annual Meeting "Ukraine and the World: Common Challenges, Common Future" on Saturday.

Ukraine needs guarantees of gas volumes to be pumped through its gas transport system both from the European Union as the consumer and Russia as the supplier, he said.

Azarov said he had outlined this problem to European Commissioner for Enlargement and European Neighborhood Policy Stefan Fuele, although this matter concerns more European Commissioner for Energy Guenther Oettinger.

"We will wait, but we should know the prospects," Azarov said.

Russia in response to questions about the amount of gas to be pumped through the pipeline says this issue depends on the EU, while the EU says it cannot give guarantees, Azarov said.

"We should reach tripartite agreements. Our prospects are more preferable than any bypassing routes, if only because we have underground gas storage facilities," he said.

The Ukrainian gas pipeline system’s annual throughput capacity can be easily increased to 200 billion cubic meters of gas, he said.