Gas TSO of Ukraine

The cost of shorthaul remains unchanged in the Q1 2025 🧮 The actual cost of the shorthaul service for the natural gas transmission through interconnection entry and/or exit points will remain unchanged within the Q1 2025. It will allow to transport natural gas that has been already transported to Ukraine applying this shorthaul service and is currently stored in the underground gas storage facilities (UGS) of Ukraine in the “customs warehouse” mode under current conditions. The corresponding decision, upon the proposal of Gas TSO of Ukraine, was approved by the National Commission for State Regulation of Energy and Utilities (NEURC). NEURC Resolution No. 1642 dated 29.09.2024 modifies the Methodology for determining and calculating Tariffs for Natural Gas Transmission services for Entry and Exit Points based on long-term incentives (hereinafter referred to as the Methodology), which was originally approved by the NEURC Resolution No. 2517 dated on September 30, 2015. "The new methodology allows us to apply a reduction factor for the shorthaul service in order to ensure that the cost of transportation for customers remains unchanged during the Q1 2025 while tariffs will be reviewed for the new regulatory period. Here’s how it will work — if the current tariff at a certain point will be increased in the new regulatory period, then the discount level at this point for Q1 2025 will be reduced similarly, so the overall cost of the shorthaul service remains unchanged. This would allow the customer to plan their operations for the first quarter of the new regulatory period," explained Vadym Rybachuk, Commercial Director of GTSOU. The current tariffs for GTSOU services have been set for the regulatory period of 2020-2024. GTSOU is in consultations with NEURC regarding the establishment of new tariffs that will preserve the economic attractiveness of the GTS and incentivize customers to utilize its capacities. The shorthaul service was introduced on January 1, 2020, offering a discount on transportation between designated interconnection points of entry and exit. In compliance with the Gas Transport System Code requirements, this service is defined as "capacity with restrictions".

The Ukrainian gas transmission system is capable of removing obstacles between the markets of Central-Eastern Europe (CEE) and the Balkans, improving their interconnection and strengthening the security of supply in Europe. This was emphasized by Dmytro Lyppa, General Director of Gas TSO of Ukraine, during his speech at The 19-th Energy Community Gas Forum. Despite new regulations and measures implemented by the European Union and national governments which are assisting in reducing the negative impact of energy crises on consumers, the markets of CEE countries remain vulnerable due to insufficient integration with the gas transmission systems of neighboring countries. “Bottlenecks between systems prevent the natural gas delivery and make the CEE market vulnerable to price risks. Connecting Ukraine to the Vertical Corridor initiative under the coordination of the Ministry of Energy and commissioning the Trans-Balkan Corridor in reverse mode is a way in which the Ukrainian GTS can the connection between markets and strengthen gas supply security and sustainability in Europe,” said Dmytro Lyppa. In addition, he noted that Gas TSO of Ukraine together with the adjacent TSO Vestmoldtransgaz (Moldova) has created a new firm route from the Balkans with an yearly of about 0.4 billion cubic meters, which has been available available and in use since September 1, 2024. Commencing from April 2025, the TSOs plan to increase these capacities to more than 2.5 billion cubic meters per year. At the same time, the network users will not only get a new route, but also access to reliable Ukrainian gas infrastructure (gas transmission and storage) at competitive rates. “We comprehend that the gas market conditions are changing and we must adjust accordingly. Gas TSO of Ukraine is working diligently on developing new routes to maximize the potential of Ukrainian infrastructure, enhancing its flexibility and maneuverability,” concluded Dmytro Lyppa.

GTSOU joined an important discussion.

GTSOU’ specialists have conducted a training session for the biomethane producers 🌿 The specialists of GTSOU have conducted a training session on the procedure for providing transportation services to new market participants — specifically the biomethane producers. Representatives from the State Customs Service of Ukraine and the Bioenergy Association of Ukraine also participated in this training session. This is the first training session of the GTSOU aimed at assisting biomethane producers to get introduced to the procedure for gas transportation services provision, applying the information platform, filing nominations for export, since the Ukrainian producers have been given the opportunity to sell biomethane from Ukraine to Europe. GTSOU provides opportunities for producers to export biomethane to Europe through interstate connection points with four EU countries. Additionally, biomethane producers are not required to connect their biomethane plants directly to the GTS; they can instead be connected to gas distribution networks.

Ukraine will be able to commence exporting biomethane already in 2024 🌿 The Ukrainian producers have been given the opportunity to export biomethane from Ukraine to Europe: the procedure for customs clearance of biomethane export, determined by the order of the Ministry of Finance of Ukraine No. 380 "On Amendments to Certain Normative Legal Acts of the Ministry of Finance of Ukraine on Customs procedures", has entered into force. The GTSOU specialists were actively involved in developing of the regulatory framework for the production and export of Ukrainian biomethane. The development of the biomethane market is one of the strategic areas of GTSOU’s operation. The Ukrainian Gas Transmission System (GTS) opens up opportunities for producers to export biomethane to Europe through interstate connection points with four EU countries. At the same time, it is not necessary for biomethane producers to link up their biomethane plants directly to the GTS, they can be connected to gas distribution networks. The terms and conditions and tariffs for joining, transportation, and export through the gas transmission system of Ukraine for the biomethane producers are the same to those for the natural gas producers. In order to support the biomethane producers, GTSOU is planning to arrangesome training sessions. These trainings for their participants will cover topics such as providing transportation services, information platform application, and filing nominations for export, etc. The first training session is scheduled for September 12, 2024 at 3:00 p.m. Biomethane producers interested in participating should register via e-mail: [email protected]

GTSOU and Vestmoldtransgaz are planning to increase the firm capacity at one of the interconnection points 🧑🔧 The Gas TSO of Ukraine (GTSOU) and Moldova’s GTS operator “Vestmoldtransgaz” (VMTG) are working on enhancing the firm capacities of gas transmission along the Trans-Balkan route towards Ukraine to at least 7 million cubic meters per day. GTSOU representatives discussed this during a workshop venue for participants of the Vertical Gas Corridor initiative. "Our short-term goal is to develop 7 million cubic meters of the firm capacities at one of the interconnection points until April 2025. For this implementation, both GTS operators must ensure the debottlenecking of several facilities along the route," - said the Head of the Division of Cooperation with Clients at GTSOU, Andrii Prokofiev. GTSOU, along with their Moldovan colleagues, has already implemented the first stage – the firm 1 million cubic meters of daily capacity was developed for gas transportation to Ukraine. This stage did not necessitate substantial investments from GTSOU or Vestmoldtransgaz, and commencing from September 1, 2024, these capacities are actively being engaged to transport gas to Ukraine. Currently, GTSOU and VMTG are collaborating on further capacity expansion. In the medium term, an increment of more than 7 million cubic meters per day is achievable, since the infrastructure of the Trans Balkan pipeline system has already been constructed and further capacity growth will only require increasing reverse capacities along the route. However, GTSOU emphasizes the necessity of introducing competitive and economically justified tariffs for this route segment. This will reinforce the technological capabilities of the Trans-Balkan Gas Corridor while also presenting a compelling business concept. It should be noted that in January 2024, GTSOU and VMTG joined the Vertical Gas Corridor initiative, a project that should combine the capacities of floating LNG regasification units in Southern Europe and consumers in Central and Eastern Europe. The Ukrainian party not only offers access to transit capacities, but also the possibility for gas storage in the Ukrainian gas storage facilities, balancing the European consumers' demand.

LLC Gas TSO of Ukraine plans to hold Market Consultations regarding the procurement of Gas turbine power plant packages to l ensure the generation of electricity. GTSOU invite all the interested Suppliers to send a Commercial Proposal indicating the following information by 12:00 (Kyiv time) on September 10, 2024 to participate in the Market Consultations: - capacity of Gas turbine power plant packages up to 50 MW, Unit capacity not less than 5 MW; - gas inlet pressure 23-30 bar; - efficiency - not less than 33%; - delivery terms: DDP no more than 90 calendar days from the date of signing the contract or FCA within 75 calendar days from the date of signing the contract; - payment terms, readiness to provide the guarantee of return of the advance payment in case of application; - warranty periods; - readiness to provide supervision services at the site of equipment operation; - readiness to provide personnel training services for LLC Gas TSO of Ukraine (operation and maintenance); - completed Declaration of the Participant according to the form of Annex 1; - additional information from the Supplier, if necessary. Please submit your Commercial Proposals on the Official Letterhead of your Company, signed by an authorized Official. Please send the information to e-mail: [email protected] with a copy to [email protected]. Read more details in comments 👇

Meet Oleksandr Pavliuk, a truck driver at the Zaporizhzhia at the Zaporizhzhia industrial site of the Ukrainian Gas Transmission System Operator. Since the beginning of the full-scale invasion, Oleksandr has been responsible for evacuating work equipment from his site and another site in Kramatorsk. Each trip took him through active combat zones. "Fear? There was no fear—we were just doing our job: moving equipment to safer regions," he recalls. Read his story: https://lnkd.in/dbWG_edG Gas TSO of Ukraine

USAID ESP helps Gas TSO of Ukraine to develop Environmental, Social, and Governance practices for its daily operations 💪 The USAID Energy Security Project (ESP) consultants presented the results of benchmarking the Operator’s activities across 16 different parameters, comparing with best-in-class peers. Additionally, ESP provided an overview of government regulations, offered recommendations on decarbonization, conducted the climate vulnerability assessment and risk mitigation analysis, and developed a governance and management plan. Based on these findings and the implemented changes, GTSOU is expected to enhance its position, gaining benefits like increased access to investments/funding, sustainability of future business models, innovation, security, and advantages for Ukrainian consumers. GTSOU General Director Dmytro Lyppa noted that the Operator’s ESG activities have already yielded the first positive results. “At a recent meeting with potential business partners, we announced that we are implementing ESG principles in our daily activities and heard approval. We are proud to have become one of the first state-owned companies in the sector to develop and implement an ESG strategy per international best practices and to be an innovator in the sustainable transformation and post-war ecological recovery of Ukraine.” https://lnkd.in/d5BdGbUq

The Gas TSO of Ukraine (GTSOU) has received five Automated Gas Distribution Stations (AGDS) from the Energy Support Fund of Ukraine With the assistance of the Ministry of Energy of Ukraine, GTSOU has received five automatic block-modular Gas Distribution Stations, which were purchased through the Energy Support Fund of Ukraine. The equipment will primarily contribute to ensuring the country’s energy security and the reliability of gas supply to the consumers. "We are grateful to the Ministry of Energy and the Energy Support Fund for their cooperative work and additional contribution to enhancing Ukraine's energy security on the threshold of the new autumn-winter period. Our team works 24/7 for the stable and sustainable operation of the Gas Transmission System and the reliability of consumers’ gas supply," — said Dmytro Lyppa, General Director of the Gas TSO of Ukraine.