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Ukraine ‘quickly’ moving towards full integration with EU gas system, GTSOU CEO says

In 2023, the total volume of gas transported to Ukraine (mainly for storage) through its western borders amounted to over 4.3 billion cubic metres (bcm), announced Dymtro Lyppa, CEO of the Gas Transmission System Operator of Ukraine (GTSOU) via LinkedIn on Friday (26 January).

“We are quickly moving towards the full integration of our system with the adjacent systems of the EU countries,” GTSOU’s CEO said. “[…] The direction from Romania to Ukraine deserves separate attention, as in 2023 we managed to transport 550 mcm [million cubic metres] here. Previously, gas had been transported via this route the opposite way, from north to south.”

Ukraine reports 40 non-resident traders with over 2 bcm stored gas this season

“The key factor holding our partners back today is military risks. Our response to that is to perform stress tests with the engagement of independent technical experts to show the reliability and resilience of our system,” Mr Lyppa added.

As Mr Lyppa noted, a stress test was conducted in July 2023, which resulted in an increase in shipment volumes from the West, he said.

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“First, we focused on the efficient use of natural gas within the system,” wrote Mr Lyppa about GTSOU’s results in 2023. In 2023, the Ukrainian gas operator reduced fuel and technological consumption by 1/3 compared to 2022, worth around 75 million euros.

“Second, compressor stations (of which we have over 80). Key task of 2023 was to determine the optimal configuration of the system, now we are ready to save up to 25 million euros here, respective legislation is pending in Verkhovna Rada,” Mr Lyppa continued.

“Finally, we have revolutionised the approach to maintenance of gas distribution stations (we have ~1,400 of them),” the CEO highlighted. Instead of stationary 24/7 controls by on-site operators, GTSOU is introducing a mobile maintenance mode according to which a qualified team visits and provides equipment maintenance at several facilities located on a designated route over the course of a week.

“Procurement is the area in which we take particular pride. Being one of the most active participants in the Prozorro platform, GTSOU saved around 7 per cent of procurement-earmarked funds compared to the expected cost in 2023,” Mr Lyppa added.

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