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News / 6 December 2013 | 12:32
Gas prices to drop by 10% in 2014

Gas prices to drop by 10% in 2014

Starting from the second quarter 2014, the average annual price of gas will be "at least 10% lower" than today. At the same time, further reduction of its consumption is planned. This announcement was made by Eduard Stavitskiy, Minister of Energy and Coal Industry of Ukraine in Beijing, after the signing by Ukraine and China of the Agreement on construction of a synthetic gas production factory, the Information-Analytical Bulletin of the cabinet of Ministers of Ukraine informs.

The minister added that it concerns not just Russian gas, but all gas supplied to Ukraine.

Experts note that Ukraine wants to reduce gas consumption by 5%. "If we manage to realize all our goals set for the next year - about 5%. It will be difficult, because during previous years we have already cut by 45%, you know, the gas consumption in the country," Stavitskiy said. 

Ministry of Energy and Coal Industry analysts note that Ukraine wants to maintain transit at the level of 90 billion cubic meters. Thus, according to the latest data, in 2012 the volume of Russian gas transit through Ukraine to Europe amounted to about 82 billion cubic meters, and by the end of 2013 this figure is expected to be slightly higher.

In particular, the volume of gas transported through Ukraine to Europe and CIS countries from January to October 2013 went up by 1% year-on-year, to 69.9 billion cubic meters. 

Also, experts evaluate the capacity of the Ukrainian gas transport system at the level of 120-150 billion cubic meters of gas annually.

Prime Minister Mykola Azarov has said that in the next few years Ukraine may completely abandon gas imports from Russia, unless the current gas contract is revised, and the gas price is reduced. Now the Russian Federation, according to the agreement of 2009, supplies gas to Ukraine at prices substantially higher than the average, about 400 USD per 1,000 cubic meters.

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