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Hungary’s and Ukraine’s TSOs to prolong firm capacity for gas transportation

Ukraine’s Gas Transmission System Operator (GTSOU) and its Hungarian counterpart FGSZ have agreed on the prolongation of firm capacity for gas transportation from Hungary to Ukraine until 30 September 2022. It will allow increasing the capacity for gas imports to Ukraine before the next heating season.

Therefore, customers will be able to book the necessary capacity for import to Ukraine at quarterly auctions. Currently, the agreement is operating in the pilot mode, while TSOs are working on the introduction of firm capacity for imports from Hungary on a permanent basis, as well as on maximisation of its level.

“Since 1 January 2022, we have increased firm capacities for gas imports to Ukraine by almost 30 per cent and opened access to new sources of natural gas supply, namely to the LNG terminal on the island of Krk (Croatia),” said the CEO of GTSOU, Sergiy Makogon. “In order to diversify its gas supply sources and strengthen Ukraine’s energy security, GTSOU continues to work on the increasing firm capacity for gas imports from Hungary on a permanent basis. Now, more than ever, we see our task in expanding opportunities for Ukrainian importers to access various routes and sources of natural gas supply to stabilise the situation in Ukraine, in all scenarios of Gazprom’s behaviour.”

“The prolongation of the agreement is a positive development in establishing a new supply route towards our north-eastern neighbour, which is beneficial for both partner countries and creates favourable conditions for CEE regional natural gas transport while enhancing the security of supply in the region,” commented Szabolcs I. Ferencz, Chairman of the Board and CEO at FGSZ.

The agreement between GTSOU and FGSZ allows the network users to physically transport up to 8 million cubic metres (mcm) of natural gas per day from Hungary to Ukraine. Together with the existing 27 mcm of daily capacity from Slovakia, this increases the total amount of firm gas import capacity to 35 mcm per day.

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