Italian investors want to invest $2 billion in new gas transport company in Ukraine

The national company Naftogaz Ukraine is planning to hold negotiations with potential investors to create a public company “Ukraine Main Gas Pipelines” in the next three months, ZN.UA reports.

The article notes that the Italian company Snam, which is interested in importing Russian gas, is among the most realistic potential investors.

“According to ZN.UA’s information, the Slovaks are also interested in this. But the Italian company Snam is prepared to invest $2 billion in the Ukrainian gas transmission network, most importantly – to provide the feed to the Ukrainian gas transmission network, which Gazprom is threatening to leave without transit gas after the so-called transit gas contract with Naftogaz expires on December 31, 2019.”

At the same time, the article specifies that the close relationship of the Italian candidate to Gazprom is alarming in and of itself, and the danger that the company might prove to be a Trojan horse should be taken into account.

In October last year it was reported that two European companies are prepared to take over management of the Ukrainian main gas pipelines. Gas companies from Italy and Slovakia sent commercial proposals outlining their activity as the operator of the Ukrainian gas transmission network. In order to collaborate with them, there would have to be a separate main gas pipeline structure.

As reported, the national company Naftogaz Ukraine is planning to start transferring assets to the newly created public company “Ukraine Main Gas Pipelines” after the ruling of the Stockholm arbitration in spring next year.

On November 9, the Cabinet of Ministers adopted decree No. 801 “on creation of the ‘Ukraine Main Gas Pipelines’ PLC”.

In addition, the Cabinet of Ministers has approved the reorganization of the subsidiary company “Gas Ukraine” by joining it  to the  parent company Naftogaz Ukraine.

  Ukraine, Italy, gas transport, Naftogaz, Gazprom