October 2019   |   Black Sea region

Ukrtransgaz successfully conducted market demand assessment for entry capacities to Ukraine from Romania

Posted on 25-06-2018 by GBC
Sergiy Makogon, Business Development Director of Ukrtransgaz is confirmed as a speaker for 6th Black Sea Oil & Gas

11 leading European and Ukrainian gas trading companies expressed their interest in natural gas transportation in direction RO-UA for the total capacity of up to 10 billion cubic meters per year, exceeding the offered capacities 2 times.

PJSC “UKRTRANSGAZ” pro-actively continues integration to the European gas system and creates additional diversified routes of gas supply to Ukraine. The TSO keeps preparation to switching to direct cooperation with adjacent TSOs in accordance with the EU regulations for all cross-border entry/exit points, which will be possible in 2020 after the termination of transit contract with Gazprom.

Photo and text source: Ukrtransgaz website

Transit-1 pipeline is one of three main pipelines of Trans-Balkan route, which is currently used for natural gas transportation from Russian Federation to Bulgaria, while Gazprom’s long-term booking contract of the pipeline on Romanian territory expired in 2016. This means that the rules of utilization of this infrastructure shall be harmonized with the requirements of the EU legislation, in particular for Third party access to the pipeline. At the same time, Ten Year Network development plan of SNTGN Transgaz SA prescribes the project of interconnection of the national gas transmission system and the offshore fields with the Transit-1 natural gas pipeline. The TSOs of Ukraine and Romania have agreed on the reconstruction of gas metering station Isaccea-1, allowing to increase the accuracy of gas metering and allow bidirectional flow in the interconnection point. Therefore, Trans-Balkan pipeline is a promising alternative route of gas supply to Ukraine, especially if we take into account the commissioning of TANAP, LNG terminals in Greece and Turkey and expected growth of natural gas production in Romanian Black Sea offshore fields.

Taking into consideration the above mentioned, PJSC “UKRTRANSGAZ” from 30 March to 30 April 2018 conducted non-binding market demand assessment among the participants of Ukrainian and EU market for the firm capacity of Transit-1 pipeline in direction RO-UA. 5 billion cubic meters of annual capacities were offered to market participants.

Findings of the Market Demand Assessment