Ukrainian and Hungarian transmission system operators – Ukrtransgaz and FGSZ Ltd. – increased the technical capacity of natural gas transportation from Hungary to Ukraine by 14% at the point of GMS Beregadorets to 19.5 million cubic meters per day, the press service of Ukrtransgaz has reported.
The relevant agreements have been signed between Ukrtransgaz JSC and FGSZ Ltd, and will come into force on 30 May 2019.
“The new agreements enable a significant increase of the gas import capacity from Hungary to Ukraine. This development is particularly important in light of the preparations for the winter season 2020,” Ukrtransgaz said, recalling that to mitigate supply risks, Ukraine aims to accumulate 20 billion cubic meters of gas in its underground storages by the beginning of the next heating season.
Ukrtransgaz said that the Hungarian import direction has gained in popularity in recent years among Ukrtransgaz customers. In 2016, about 1 billion cubic meters of natural gas was imported from Hungary to Ukraine. In 2017 this figure rose to 2.8 billion cubic meters, and in 2018 it reached 3.4 billion cubic meters. Since the beginning of 2019, there has been additional year-on-year growth of 66% to 0.92 billion cubic meters.
“With tariffs for the exit points of the Hungarian gas transmission system from April to September at the competitive to European ones level, there is a strong possibility that the current growth trend will continue over the coming months,” the company said.
The operator of the gas transportation system JSC Ukrtransgaz has commissioned Kalush-2 gas distribution station (Ivano-Frankivsk region) after reconstruction, the press service of the company has reported.
The total investment in the reconstruction amounted to UAH 82 million. The station is equipped with automatic management systems with functional alarm systems and systems of automatic protection against pressure increase/decrease.
In addition, an ultrasonic gas flow measurement system is installed at the station.
“With the rapid development of industry in Kalush, the modernization and restoration of activities of chemical enterprises and, accordingly, increasing consumption volumes, the station will ensure a reliable and uninterrupted supply of gas to consumers,” the report said.
Kalush-2 gas distribution station, built in 1975, supplies gas to the city, nearby villages and industrial consumers from the Uhersko-Ivano-Frankivsk-Chernivtsi gas pipeline.
JSC Ukrtransgaz has created a new branch – Operator of Ukrainian Gas Storage Facilities, which will be responsible for the provision of gas storage services and operation of underground gas storage facilities.
The company said in a press release that the branch would consolidate all assets, processes and employees required for the provision of gas storage services. It is planned that the branch will start operating at a full capacity from January 1, 2019. The branch will function as a structural unit of Ukrtransgaz, without establishing a separate legal entity.
Ukrtransgaz is conducting preparatory work on the legal and organizational design of the operation of the branch, the redistribution of production and business processes, an inventory of existing assets and the transfer to the new branch of more than 1,700 specialists who support the operation of Ukrainian underground gas storage facilities.
“The creation of the operator is a consistent step towards the qualitative completion of the unbundling process, as a result of which the operator of Ukraine’s GTS [gas transmission system] will be finally separated from Ukrtransgaz after the current transit contract with Gazprom terminates,” Ukrtransgaz President Andriy Khomenko said.
Ukrtransgaz, a wholly owned subsidiary of Naftogaz Ukrainy, operates Ukraine’s gas transmission system and 12 underground gas storage facilities with 31 billion cubic meters of capacity.
JSC Ukrtransgaz in January-September 2018 increased net loss by 35% or UAH 5.671 billion year-over-year, to UAH 22.011 billion.
According to a financial report of the company posted on its website, net revenue fell by 7% or UAH 2.84 billion, to UAH 36.688 billion, and gross loss rose by 73.7% or UAH 5.669 billion, to UAH 13.36 billion.
As reported, in 2017, Ukrtransgaz increased net loss 4.4-fold, to UAH 24.181 billion. Net revenue grew by 31.2%, to UAH 51.181 billion, and gross loss totaled UAH 14.449 billion compared with UAH 1.948 billion of gross profit in 2016.
Ukrtransgaz, fully owned by Naftogaz Ukrainy, operates a system of gas trunk pipelines and 12 underground gas storage facilities in the country.
Public joint-stock company Ukrtransgaz on June 22 and June 23 announced 12 tenders to buy gas for technological needs and balancing in the amount of 2.437 billion cubic meters with the expected cost of UAH 21.202 billion (VAT not included).
The bids can be submitted before July 23 and July 24 (depending on the lot). The auctions will take place on August 28 and August 29.
The final price of gas to be paid by Ukrtransgaz to the winners of the tenders will be determined, taking into account quotations at NetConnect Germany (NCG) in the period when gas is delivered.
