UPDATE 1-Ukraine, Slovakia set for deal to curb need for Russian gas


* Deal could help bring about historic Ukraine, EU pact

* Slovakia link would add to Hungarian, Polish reverse flows

(Adds context, quotes, details)

BRUSSELS Nov 19 (Reuters) – Gas pipeline operators in
Slovakia and Ukraine are expected to sign a deal soon that
allows the European Union to ship gas through Slovakia to
Ukraine, helping to reduce Kyiv’s dependence on Russia, the
European Commission said.

An agreement could signal a historic partnership between
Ukraine and the European Union.

“We consider that we are very close to a deal,” Commission
spokeswoman Marlene Holzner told Reuters. “The content of the
deal has been agreed, whereby the gas will flow from West to
East through Slovakia to Ukraine. It’s just a matter of signing,
which should be in the next few days.”

She said the deal followed more than a year of talks
brokered by EU Energy Commissioner Guenther Oettinger.

The gas would be shipped by physical reverse flow, through
existing, unused pipelines, plus a small section of pipeline to
be built next year.

The European Union has a keen interest in strengthening ties
with Ukraine and pulling the former Soviet republic from
Russia’s orbit. Ukraine’s price disputes with Russia have
disrupted gas supplies to both Ukraine and the European Union.

The EU has been courting Ukraine with the idea it could
become a gas hub, rather than just a transit site that depends
on a dominant supplier, Russia.

Since late last year, technology allowing pipeline flows to
be reversed has allowed Ukraine to re-import some gas back from
EU nations, including Hungary and from Germany via Poland.

Reverse flow through Slovakia is more helpful strategically,
because volumes would be higher. But it is also politically
sensitive, because of worries about the impact on Slovakia’s own
supply.

Eustream, Slovakia’s gas pipeline operator, has annual
transmission capacity of 90 billion cubic metres, 90 percent of
which goes to the European Union. The gas is Russian.

A spokesman for Eustream said late on Monday that Eustream
was cooperating with its Ukrainian partners but could not
disclose details until a deal was signed.

(Editing by Larry King)