Ukraine Pipeline Operator Works with EU TSOs
Naftogaz Ukrainy subsidiaries Ukrtransgaz and Magistralny Gazoprovody Ukrainy (MGU), the future transmission system operator (TSO), will set up a joint working group with five European TSOs that might help with creating an independent TSO. They might also become involved themselves in operating Ukraine’s pipelines, the monopoly said April 3.
The TSOs are French GRTgaz, Dutch Gasunie, Italian Snam, Slovak Eustream and Belgian Fluxys, most of which have, or are planning, operations outside their national borders.
From next January, any Russian gas transiting Ukraine will be subject to European Union network codes covering tariffs, capacity allocation, balancing and other functions that a TSO carries out in return for its regulated revenue. There is doubt if the Nord Stream 2 line will be completed by December 31, the expiry date of the present 10-yr Kiev-Moscow transit agreement.
At this stage, specialized experts from the European TSOs will support the establishment of an independent Ukrainian TSO and its application for certification with the Ukrainian regulator (NEURC) and the Energy Community Secretariat and contribute to the GTS modernisation plan to ensure its technical reliability and efficiency.
The European TSOs will also provide advisory support through participation in joint meetings of Naftogaz’s executive board and the unbundling – the separation of supply and trade from transport and storage assets – committee of the supervisory board. Further co-operation between the TSOs and MGU will be discussed separately.
Now working hard pumping Russian gas east to west and south, the Ukrainian pipeline system is ageing and parts need rebuilding. There is also uncertainty about how much future work there will be, when Russia's Nord Stream 2 and TurkStream 2 are both on line some time next year. Gazprom has Russia's export monopoly of pipeline gas.
As the Ukraine system was built in Soviet times, there is no distinction between the domestic high-pressure grid and the transit pipelines.