Russian gas transit through Ukraine to the EU and Moldova increased to 89.6 bcm in 2019, which is 3% higher compared to 2018. The annualized maximum capacity use of Ukraine’s gas transmission system (GTS) for transit reached 113 bcm in 2019.

Gas imports to Ukraine grew to 14.2 bcm, which is 34.9% higher than in 2018. Ukraine has been importing gas exclusively from the European market for more than four years.

13.1 bcm of gas was injected into underground gas storages (UGS) in 2019, which is 34% more than in 2018. UGS facilities were filled to 70% of capacity by the start of the withdrawal season.

As of 1 January 2020, Ukraine had 18.9 bcm of gas in its UGS facilities, which was 36% more than at the same time during the previous year.

Performance of the Ukrainian GTS in 2019, bcm

Source: Ukrtransgaz

MAJOR EVENTS IN THE UKRAINIAN GAS MARKET

Unbundling

Naftogaz unbundled its gas transmission business. Following successful certification with the Ukrainian regulator (NEURC) and the Energy Community Secretariat, Ukraine’s independent TSO started operation on 1 January 2020.

New transit contract

Naftogaz, Gas Transmission System Operator of Ukraine LLC (GTSOU) and Gazprom signed new agreements to continue Russian gas transit through Ukraine in 2020-2024.

Naftogaz assumed a role of transit facilitator booking entry and exit capacity with GTSOU for Gazprom. Guaranteed minimal transit volume for 2020 is 65 bcm and 40 bcm/y for the period from 2021 to 2024.

Direct interconnection agreements with adjacent TSOs

When preparing for unbundling, GTSOU managed to conclude EU-compliant direct interconnection agreements with adjacent transmission system operators (TSOs). This enables virtual reverse gas supplies to Ukraine.

GTSOU brought its relations with adjacent TSOs in line with both Ukrainian and European law and succeeded to sign interconnection agreements with Polish GAZ-SYSTEM S.A., Hungarian FGSZ ltd, Slovak Eustream, Russian Gazprom, Moldovan Moldovatransgaz LLC and Moldovagaz JSC, and Romanian TRANSGAZ.