Gas Transmission System Operator of Ukraine (GTSOU) and Polish gas transmission operator, GAZ-SYSTEM have presented a joint project to gas market representatives to increase firm capacities for gas transportation from Poland to Ukraine, GTSOU announced via LinkedIn on Monday (29 May).
Earlier this month, energy regulators from both countries gave the green light to this undertaking. Separately, the project will be developed in full compliance with the EU business rules, GTSOU said.
“Implementation of this long-term project will allow businesses to obtain guarantees of stable transportation of resources from Poland, all the more so since Poland is actively working on creating its energy hub and developing LNG [liquified natural gas] capacity and pipeline gas transportation of non-Russian origin. The possibility of physical transportation will become available for non-resident companies and Ukrainian traders to supply or store gas in underground storage facilities,” said Andriy Yefanov, Head of the Auction Platform Support Unit.
The next stage is the booking at auctions of the combined new (increased) capacity from 1 October 2030 to 30 September 2045. The auctions will be held on 3 July 2023 on the GSA platform.
The further step in the project implementation is an economic test based on the results of auctions. Only after a positive result, the TSOs would be able to conclude an agreement on the performance of the project and start work by the approved schedule, GTSOU said.
In 2021, the Ukrainian and Polish TSOs assessed market demand, demonstrating market participants’ interest in the capacity of 8.7 million cubic metres (mcm) for gas transportation to Ukraine.
Based on the results of the demand assessment, the capacity increase project was developed. The project sets out the construction of a gas pipeline and a gas metering station by GAZ-SYSTEM and the reconstruction of the compressor station by GTSOU.