Ukraine must deliver a fully certified and legally compliant transmission system operator (TSO) by the end of the year, Naftogaz CEO Andriy Kobolyev said at the 5th Ukrainian Gas Forum in Kyiv
Ukraine must deliver a fully certified and legally compliant transmission system operator (TSO) by the end of the year, Naftogaz CEO Andriy Kobolyev said at the 5th Ukrainian Gas Forum in Kyiv.
According to Kobolyev, failure to fulfil this condition would cause a number of problems with shippers and European partners to whom Ukraine made commitments. “If we fail to duly complete the TSO unbundling process, Ukraine will be blamed for any problems that may occur during the coming winter. We don’t have four months. We must deliver a fully certified TSO by the end of the year,” the Naftogaz CEO explained.
Kobolyev is confident that Ukraine can have an independent and fully capable TSO by the end of the year if all stakeholders cooperate and ensure that all necessary decisions are made fast.
Proper and timely implementation of European gas market rules is one of the key prerequisites for successful unbundling, Kobolyev emphasized.
Commenting on current TSO unbundling status, Kobolyev reported that Naftogaz had transferred the necessary staff, business processes and IT systems required for the flawless operation of the new TSO to the Gas Transmission System Operator of Ukraine LLC (GTSOU). In order to hand over the key asset, which is the gas transmission system, to the new operator, Ukraine’s parliament and government need to make relevant decisions.
GTSOU will be sold to Mahistralni Gazoprovody Ukrainy JSC (MGU), which is owned by the Ministry of Finance. As a result of the unbundling process, GTSOU will operate the Ukrainian GTS and act as a party to gas transmission contracts with all users starting from 1 January 2020. Gas transmission operations will be thus fully unbundled from Naftogaz group.
The new TSO has applied for certification to the national regulator. The company also submitted the draft secondary legislation necessary to complete the unbundling procedure to the Ministry of Energy and Environment.
Click here to review Andriy Kobolyev’s presentation at the 5th Gas Forum.
NJSC Naftogaz of Ukraine