Russia's Gazprom will have to use the Ukrainian gas transportation system for its gas shipments to Europe after 2020. The EU infrastructure is not ready to accept gas from Nord Stream 2.
The existing transit agreement expires in late 2019 and Gazprom will be able to pump not more than 34 billion cubic meters of gas through Nord Stream 2 out of the projected 55 billion cubic meters.
Thus, a new transit contract with Ukraine is inevitable. The capacity of the new gas pipeline will reach 55 billion cubic meters a year.
The construction of the Eugal gas pipeline linking Nord Stream 2 with Europe's grid will be completed by the end of 2020. Therefore, it will be capable of transporting no more than 34 billion cubic meters of gas.
The maximum capacity will be reached only after the completion of the second string of the Eugal pipeline.
Estimates of the volumes of the necessary Ukrainian transit were made based on the current level of demand for Russian gas in Europe, but it could increase in the coming years.
