Business news from Ukraine

GAS TRANSMISSION SYSTEM OPERATOR OF UKRAINE AND ROMANIA’S TRANSGAZ SIGN AGREEMENT

Gas Transmission System Operator of Ukraine LLC (TSO of Ukraine) and Romania’s Transgaz have signed an interconnection agreement meeting European rules to start cooperation from January 1, 2020. The Ukrainian operator recalled that the negotiations with the mediation of the European Commission have been going on for three years. Operators of Bulgaria, Greece and Moldova have also been involved in them.
“This means that all suppliers have the opportunity of freely transporting gas with a new supply route – from Southern Europe and Turkey – through Bulgaria and Romania – to Ukraine and further to Moldova. That is, from January 1, at the Isaccea 1-Orlivka 1 interstate point a daily capacity on the Ukraine-Romania route in the amount of 17.8 million cubic meters will be available, as well as 15.8 million cubic meters per day in the opposite direction,” the operator said.
The first auctions for booking capacities at the Isaccea 1-Orlivka 1 point should be held in the coming days.
The operator said that the agreement previously signed between the gas transmission system operators of Ukraine and Romania did not allow gas to be transported in the reverse mode, and also did not provide European rules for interaction, since such an opportunity was blocked by the current contract between Naftogaz Ukrainy and PJSC Gazprom.
In addition, such an agreement creates an additional technical opportunity for Moldova to alternatively import gas for its own needs from Turkey and Greece if Gazprom stops transit to Europe through Ukraine.
“This decision is historic and extremely important, because it allows you to create an additional route for gas imports to Ukraine, primarily to provide gas to Moldovan consumers and border consumers of Ukraine in Odesa region. This will allow winter to pass uninterruptedly, even if the gas transit could be stopped from the Russian Federation,” Director General of TSO of Ukraine Serhiy Makohon said.

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