The European Commission is doing its best to avoid a repeat of the January 2009 gas supply crisis, an EU official told New Europe on July 3. “We’re doing whatever we can to prevent that from happening. But I’m not sure that it will be enough,” Ferran Tarradellas Espuny, spokesman for EU Energy Commissioner Andris Piebalgs said.
Following a regular meeting of the bloc’s Gas Coordination Group (GCG), the EU urged regional cooperation between member states. “In way what we are saying is neighbours have to get in contact with neighbours in order to get help if they are in trouble,” Tarradellas Espuny said.
Asked if EU governments should increase their gas reserves in view of possible disruptions in supplies from Russia via Ukraine in the coming winter, he said: “For instance, yes. Basically if some country thinks that it could be in trouble if there is an interruption of supply to identify where they can get the help, and to try to cooperate with the neighbour whoever it is to try to get that supply,” the EU energy spokesman said.
A quarter of all the natural gas supplied to the EU comes from Russia. Of that, 80 percent passes through Ukrainian pipelines. A row over gas bills in January triggered a gas crisis between Russia gas giant Gazprom and Ukraine national stock company Naftogaz, with the resulting shortfall causing shortages in many European countries.
The European Commission is currently in talks with Ukraine on a possible loan to the country which lacks the money for planned summer purchases of Russian natural gas to fill underground reservoirs used to supply European customers during winter months. If there is not enough gas in Ukrainian storage this could have a serious impact on EU consumers in the winter, as a shortfall in its gas supplies would reduce pressure throughout the Russia-EU gas transit system - thereby cutting the amount of gas which could flow to Europe.
Ukrainian officials met with their European counterparts in Brussels to discuss a possible USD 4.2-billion emergency credit to the former Soviet republic. However, Ukraine’s government must enact reforms to its gas transport system for more transparency and efficiency to obtain the loans.
Tarradellas Espuny said it was up to the lenders to set the conditions. “As a matter fact, the reforms are going to be proposed by the people giving the loans. I think there will be more or less in line with the issues that we discussed in the conference,” he said. But whoever is going to give the money will decide on the conditions because it’s their money,” he added.
Asked if Ukraine need to refurbish its aging gas transportation system, he said that was the least to the Commission’s worries at the moment. “You’re going too far. For me, if we get past this summer, I will be more than happy. Reform of the pipeline system of Ukraine... I would like them to survive this summer,” he said. He explained that Ukraine needs to rebuild its underground storage supplies now.  “They have to receive it in summer not in winter and they have to pay for it in the summer so that’s what the problem is,” the EU energy spokesman said.