Nov. 23 (Bloomberg) -- Eustream AS, Slovakia’s gas-transit company, plans an upgrade of its grid worth almost 400 million euros ($535 million) to compete with other routes transporting Russian gas westwards.
The subsidiary of the country’s dominant gas company Slovensky Plynarensky Priemysel AS will spread the investment over five years, spokesman Vahram Chuguryan said in an e-mailed statement from Bratislava, Slovakia, today.
The company operates a pipeline link between Ukraine and the European Union with a capacity of transporting 90 billion cubic meters per year, or 15 times the country’s consumption. The upgrade is Slovensky’s response to increased competition after a recent opening of the Nord Stream route, which bypasses Ukraine.
Eustream has contracts for transporting 50 billion cubic meters of gas annually until 2028, Chuguryan said. Last year, it shipped 71.4 billion cubic meters and posted an after-tax profit of 188 million euros.
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