Ukraine’s Naftogaz and Ukrtransgaz, Italy’s Snam and Slovakia’s Eustream have signed a Memorandum of Understanding aimed at jointly evaluating opportunities for collaboration in the operation and enhancement of the gas transmission system (GTS) in Ukraine. The MoU was signed in the presence of Ukraine’s Minister of Energy Ihor Nasalyk, EC Commissioner for Climate Action & Energy M.A. Cañete, Italy’s Minister of Economic Development Carlo Calenda.
Moreover, it is aimed, among other, at maintaining the quality of natural gas transmission in Ukraine, in line with the standards of European markets, ensuring that the Ukrainian GTS is operated in a safe and efficient manner and is accessible on a transparent and non-discriminatory Third Party Access basis, in compliance with the applicable legislation.
Under the scope of the Memorandum, the companies will make a joint assessment on the operation and enhancement of Ukraine’s gas transmission network in order to make the Country’s transportation system more efficient, advanced and competitive.
Ukraine is implementing the unbundling of the gas transmission system operator (TSO) from the incumbent Naftogaz and has expressed its interest in cooperating with an experienced Western transmission system operator(s) in the operation of the national transmission system, in accordance with the Law of Ukraine “On the Natural Gas Market”.
This will help fostering the liquidity and security of supply for both the EU and Ukraine’s gas markets, fully in line with the EU Commission Energy Security Strategy.
Naftogaz of Ukraine is the national vertically integrated company engaged in full cycle of operations in O&G exploration and production, transport and storage, supply of natural gas and LPG to consumers. In 2016 the Group accounted for 79% of total gas production in Ukraine (15.9 bcm vs. 20.1 bcm), 74% of gas imports to Ukraine (8.2 bcm vs.11.1 bcm) and 82 bcm of gas transit to Europe (46% of total supplies of Russian gas to Europe). Naftogaz is the sole shareholder of Ukrtransgaz. Naftogaz is committed to be the leading engine of modernization and professionalism of the Ukrainian energy sector, integrated with the European market, ensuring security of supply and competitively priced energy while maximizing value of local resources.
Ukrtransgaz is the operator of one of the most powerful gas transmission and storage systems in the world. GTS entry capacity is above 302 bcm/year, exit capacity in the European direction is over 151 bcm/year and storage capacity is 31 bcm. Ukraine's GTS links the systems of the neighboring Russia, Belarus, Poland, Slovakia, Hungary, Romania and Moldova. Through them it is integrated into the wider European gas network remaining the shortest and the most efficient transit route and the essential element of security of supply in the region.
Snam operates and develops Europe’s largest, most accessible pipeline network (which extends for more than 40,000 km), the largest storage infrastructure in Europe (19 bcm capacity) and one of the first LNG terminals built in Europe. Snam’s investments across Europe aim to facilitate the European energy union network integration and to promote gas as a key pillar of a sustainable energy mix. Leveraging its expertise and core competencies, the Company has recently launched Snam Global Solutions to deliver studies, consulting and project management activities to the market.
Eustream is the owner and operator of one the largest gas transmission systems in the European Union. Eustream’s mission is to transport natural gas in Slovakia and through Slovakia to the European markets. Eustream is a long-term partner to Ukrainian gas transmission system by being directly interconnected with Ukraine in both natural gas flow directions.
Corporate Communications Department
NJSC Naftogaz of Ukraine