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    Naftogaz Prepares for Life After Gazprom

Summary

Ukraine and Romania are considering making a 4bn m³/yr interconnection between the two countries flow in reverse, ready for when Gazprom's transit deal with Naftogaz Ukrainy ends in 2019.

by: Dalga Khatinoglu; Ilham Shaban

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Naftogaz Prepares for Life After Gazprom

Ukraine and Romania are considering making a 4bn m³/yr interconnection between the two countries flow in reverse, ready for when Gazprom's transit deal with Naftogaz Ukrainy ends in 2019, Ukrtransgaz said November 8. Then Ukraine will be able to take gas from Romania as well.

The transit of Russian gas across Ukraine has increased by about a quarter year on year during the period from January to September 2017, but Gazprom is preparing to use other routes like TurkStream and Nord Stream 2 after 2019.

Ukraine stopped importing Russian gas for its own needs in November 2015; its gas imports from the European Union rose by 70% in the first nine months of 2017 to reach 10.7bn m³.

Ukrtransgaz announced November 8 that the main idea of the draft interconnection agreement is to prepare for switching to direct co-operation between the TSOs of Ukraine and Romania (SNTGN Transgaz).

"Unfortunately, today Gazprom, referring to the provisions of the current contract, is artificially blocking the introduction of European practices and approaches at the interconnection points (IP) of the Ukrainian and European GTS. Solving this problem is one of the requirements of Ukraine in the dispute between Naftogaz and Gazprom in Stockholm arbitration," it said.

Naftogaz recently announced that it has filed a $5bn case against Gazprom in Stockholm arbitration.

In July and August the Ukrainian and Romanian TSOs held consultations with market participants on the business rules that would apply at Tekovo on the Ukrainian side and Medias on the Romanian side of the border.

"Responses have been received from five companies working or planning to work in the natural gas markets of Ukraine and Romania, who welcome the prospect of introducing European rules at this IP," Ukrtransgaz added. 

The company added that pressure limits in Romania mean that gas cannot flow into Ukraine at that IP.  

Following the consultation SNTGN Transgaz will hold a market survey in order to quantify the level of the capacity request. Depending on the outcome it will analyse the necessary investments to remove the current technical limitations and it may then amend the interconnection agreement.

 

Dalga Khatinoglu, Ilham Shaban