Bridge between Russia, Ukraine and Europe
Slovakia currently transits about 50% of all Russian natural gas supplied to Europe and is also the main gateway for European gas exports to Ukraine in reverse flow.
This puts the budding Slovak gas hub in the middle of crucial European gas industry projects and developments affecting the entire sector.
The future of Slovak gas transit is linked to developments in Ukraine as Russia’s transit agreement with the latter expires in 2019. This pushes Slovak transmission system operator Eustream and the government to look for new business models. The interconnector pipeline with Hungary that began commercial operations on 1 July 2015 is one example.Slovakia is also backing larger pipeline projects, such as Eastring, which would connect Slovakia, Hungary, Romania and Bulgaria. The pipeline could be linked into the proposed Turkish Stream pipeline that would flow Russian gas under the Black Sea into Turkey.
The launch of the daily Slovak price assessment in our European Spot Gas Markets report provides a price reference that is key for both European and Ukrainian gas sectors.
Liquidity growth at the Slovakian virtual natural gas hub has been driven by recent developments in Ukraine. ICIS editors Katya Zapletnyuk and Tom Marzec-Manser discuss the reasons for launch of the ICIS daily Slovak price assessment.
This podcast will help you understand:
The benchmark report for European natural gas is now covering daily pricing for the Slovak market.
This addition complements the ESGM coverage of Europe’s most active traded gas markets, including Britain, further providing transparency to wholesale gas trade in the region.
ICIS energy editor Tom Marzec-Manser and energy reporter Marcello Kolax have produced this in-depth white paper outlining the key developments in the Slovak gas market and the implications for gas hubs.