Over the next 10 years, Ukrtransgaz plans to invest UAH 31.040 billion in the development of underground gas storage facilities (UGS) in accordance with the gas storage development plan for 2025-2034 approved by the National Energy and Utilities Regulatory Commission (NEURC).
“The result of the implementation of the Gas Storage Development Plan for 2025-2034 should be to ensure reliable and trouble-free operation of gas storage facilities,” the regulator said in its justification for the relevant resolution adopted at a meeting on Tuesday.
Based on this year’s results, Ukrtransgaz plans to spend UAH 1,091.468 million of its own funds on the development of the UGS facilities. In particular, the company plans to allocate UAH 474.320 million for the operation of gas storage facilities, UAH 266.729 million for the modernization and purchase of vehicles, special machines and mechanisms, UAH 207.506 million for UGS facilities, and UAH 93.679 million for the implementation and development of information technologies.
As reported, in 2023, Ukrtransgaz earned almost UAH 7 billion in net profit, compared to UAH 3.2 billion in 2022.
Ukrtransgaz is a part of Naftogaz Group. It provides for the operation of Ukrainian underground gas storage facilities, as well as modernization and construction of main gas pipelines and facilities on them. It owns 12 underground gas storage facilities located throughout Ukraine with a total capacity of 31 billion cubic meters.
This year, Ukrtransgaz plans to spend UAH 1,091.468 million of its own funds on the development of underground gas storage facilities (UGS) according to the gas storage development plan for 2025-2034 approved by the National Energy and Utilities Regulatory Commission (NEURC) on Tuesday.
In particular, according to the company, it is planned to allocate UAH 474.320 million for the operation of gas storage facilities, UAH 266.729 million for the modernization and purchase of vehicles, special machines and mechanisms, UAH 207.506 million for the UGS facilities, and UAH 93.679 million for the implementation and development of information technologies.
In total, the plan envisages a total investment in the development of gas storage facilities of UAH 31.040 billion over 10 years.
“The gas storage operator’s development plan is primarily aimed at maintaining reliable, trouble-free operation of the UGS facilities under martial law, as well as at responding quickly and timely to wartime challenges, and restoring the facilities,” said Roman Malyutin, CEO of Ukrtransgaz, at the regulator’s meeting.
The draft resolution of the NEURC “On Approval of the Gas Storage Development Plan for 2025-2034 of the gas storage operator JSC Ukrtransgaz” together with the materials justifying the need for its adoption will be posted on the official website of the regulator www.nerc.gov.ua for suggestions and comments.
As reported, in 2023, Ukrtransgaz earned almost UAH 7 billion in net profit, compared to UAH 3.2 billion in 2022.
Ukrtransgaz is a part of the Naftogaz group. It provides for the operation of Ukrainian underground gas storage facilities, as well as modernization and construction of main gas pipelines and facilities on them. It owns 12 underground gas storage facilities located throughout Ukraine with a total capacity of 31 billion cubic meters.
Ukrtransgaz plans to invest UAH 998.277 million in the development of natural gas storage facilities in 2024 in accordance with the gas storage development plan for 2024-2033 approved by the National Energy and Utilities Regulatory Commission (NEURC) at a meeting on Tuesday.
“We are moving towards 100% fulfillment of investment programs in general,” said Roman Malyutin, Ukrtransgaz CEO, at the meeting.
According to him, the approved plan provides for the reconstruction and construction of fixed assets of technological processes in the gas storage system, the development of critical infrastructure security facilities, including cybersecurity, and information technology.
According to the document, the company intends to invest UAH 472.355 million this year in the operation of gas storage facilities, UAH 415.988 million in the development of underground gas storage facilities, UAH 66.442 million in the modernization and purchase of vehicles, special machines and mechanisms, UAH 27.413 million in the purchase of diagnostic and inspection equipment and other devices, and UAH 16.079 million in industrial and administrative buildings.
In total, Ukrtransgaz’s gas storage development plan for 2024-2033 envisages an investment of UAH 14 billion 534.148 million.
JSC Ukrtransgaz, acting as the operator of UGS facilities in Ukraine, has begun preparations for certification for the use of the capacities of its UGS facilities by EU countries, the press service of the company reported on Friday.
“Ukrtransgaz has already begun preparations for passing the independent EU certification introduced for gas storage operators. The company is confident of its successful completion,” it said.
Ukraine, as a member of the Energy Community, is ready to offer up to 10 billion cubic meters of its capacity for gas storage by EU countries.
“There is a corresponding positive and comprehensive experience of cooperation with foreign customers of services. They have already had the opportunity to be convinced of the reliability of gas storage in Ukraine, and they continue to store it today in our facilities,” the press service noted.
In turn, Gas Transmission System Operator of Ukraine (GTSOU) in the course of a joint presentation with Ukrtransgaz at a meeting of the South-East European Gas (SEEGAS) Initiative emphasized that the gas transportation infrastructure and UGS facilities of Ukraine can become the basis for strengthening European and regional energy security already on the eve of the next winter.
According to Olha Belkova, the director for relations with government agencies and international organizations at the GTSOU, in order to further strengthen the energy security of the region of Central and Eastern Europe, Ukraine and partners from Poland, Slovakia, Hungary, Romania, Moldova face the task of strengthening cooperation with countries such as Lithuania, Turkey, Greece and transatlantic partners.
She informed about the interest of Ukrainian traders in gaining access to LNG facilities in Europe. To transport gas to Ukraine from the Lithuanian and Polish LNG terminals, it is necessary to increase the guaranteed capacities on a long-term basis. There is also considerable interest in potential gas supplies from Greece and Turkey via the Trans-Balkan pipeline.
PJSC Trunk Gas Pipelines of Ukraine made the first payment to JSC Ukrtransgaz in the amount of UAH 3.85 billion for corporate rights in the authorized capital of Gas Transmission System Operator of Ukraine LLC (GTSOU), the press service of Ukrtransgaz reported.
The company clarified that the payment was made as part of the fulfillment of contractual obligations assumed by the parties as part of the process of separating natural gas transportation from Naftogaz (unbundling).
The financial report of Naftogaz noted that the sale and purchase agreement for a stake in GTSOU provides for the group to receive an initial financial contribution of UAH 3.871 billion and regular variable payments over 15 years based on a dynamic price calculated according to a formula agreed by the parties. Accounts receivable were recognized at the date of sale of GTSOU according to the value of UAH 81.306 billion. In addition, on January 1, 2020, Ukrtransgaz sold its own gas to GTSOU, which is necessary for the operation of the system, for UAH 4.53 billion.
In January-September 2020, GTSOU received a net profit of UAH 20.277 billion, net income – UAH 44.827 billion.
The Ukrainian government on Wednesday will consider the revised bill on the list of state-owned facilities that are not subject to privatization, which envisages the retaining of at least 50% plus one shares in Ukrtransgaz, Ukrgazvydobuvannia and Ukrtransnafta and 100% in Ukrhydroenergo, Ukrenergo and Energoatom.
According to an explanatory note to the document available at Interfax-Ukraine, after the first consideration of the bill at a meeting of the Cabinet of Ministers on December 27, 2019, a conciliation meeting and a meeting of the government committee took place, as a result of which the lists underwent significant changes.
If in the first version the Ministry of Economic Development, Trade and Agriculture allowed selling up to 50% in all facilities, now their number has been reduced to 22, while for 135 facilities it is proposed to fix all their shares in state ownership.
