URSO: Shutdown of Ukrainian Transit Has Led to Increase in Gas Prices

Bratislava, March 12 (TASR) - The decision to halt gas transit via Ukraine has led to a pronounced increase in gas prices, with higher transit costs borne by Slovakia and the EU alike, warned Office for the Regulation of Network Industries (URSO) head Jozef Holjencik on Wednesday. Holjencik pointed to problems with efforts to replace imports of Russian pipeline gas. "Anything can be replaced, even imports of Russian gas via the pipeline in Ukraine with LNG imports, of course, but the question is at what cost this comes for regular gas consumers in Slovakia and the EU. At the moment, it seems that gas prices will double," he said. According to Holjencik, LNG imports, which made up about 40 percent of EU gas imports in 2024, are an alternative, but their higher prices and volatility pose a challenge. In addition, competitive demand in Asia is also driving market prices up further. "Alternative pipeline routes, such as via TurkStream, for example, are limited in capacity and unable to fully replace Ukrainian transit. Slovakia can rely today on its own gas reservoirs and imports via the Hungarian-Slovak connection, but that's not sustainable long term. What's more, mandatory stocking up on gas under EU directives can work to drive prices up even further in the summer," said Holjencik. URSO emphasised that higher gas prices are a factor influencing the competitiveness of European enterprises. Dependency on LNG could lead to a similar situation to the one seen with Russian gas in the past, which is why the regulator calls for more gas pipeline imports and a search for sustainable solutions for the EU's energy security. mf/df