Gas TSO of Ukraine

The Trans-Balkan Corridor unblocks access to additional sources of gas for Central European countries, namely via the Greek and Turkish LNG terminals, as well as the TAP and TANAP gas pipelines. However, the full-fledged launch of the project requires coordination and cooperation along the entire length of the pipeline. Kateryna Kovalenko, Head of strategy of GTSOU, presented the project meant to rethink the Trans-Balkan Corridor at “EU4Energy: Gas(es) Markets in Ukraine". “This route can strengthen the region’s energy security and has already successfully proved itself in 2023, transporting over 0.5 bcm of gas in the reverse mode. However, further development of the route requires coordination with our Moldovan and Romanian colleagues,” Kateryna Kovalenko said. The best option to attract traders to this route would be to create a joint product that would allow to book necessary capacities along the length of the route.

Dmytro Lyppa, General Director of the Gas TSO of Ukraine, took part in the high-level conference “EU4Energy: Gas(es) Markets in Ukraine” organized by the Energy Community. The event took place on June 26, 2024, in Kyiv. The speech delivered by the GTSOU’s head concerned the Company’s immediate future, namely its operations under the “zero transit” conditions following the expiration of the current agreement in December 2024. Dmytro Lyppa dwelled on the Company’s Strategy for 2024-2029, which has already been developed, presented and approved by both Ukrainian stakeholders and international partners. On the one hand, the Operator’s strategy is focused on ensuring revenue by expanding firm capacities at interconnection points with the EU and promoting development of renewable gasses. On the other hand, it consists in reducing the Company’s operational costs in accordance with the new realities in which it operates. “GTSOU is actively working on the improvement of the natural gas transportation efficiency. For instance, in the first five months of 2024 we managed to reduce the use of fuel gas by 50% compared to 2023. Also, we are actively scaling up the European approach to maintenance of infrastructure, which is mobile maintenance, as well as developing an in-house contractor for repair works,” Dmytro Lyppa, General Director of Ukraine’s Gas TSO, noted. Finally, the Company’s CEO emphasised the important role that it plays in ensuring Ukraine’s energy security, as well as that of the European Union. This includes transportation of natural gas from the EU for temporary storage in Ukraine, projects aimed at expanding capacities at the Ukraine-Poland border, as well as the launch of the Trans-Balkan Corridor in the reverse mode (from Southern Europe to Eastern European countries).

Dmytro Lyppa presented advantages of the Central European Hydrogen Corridor at the Ukraine Recovery Conference in Berlin During the round table “Development of the Ukraine-EU Hydrogen Corridor” held in the wings of the Ukraine Recovery Conference that took place on June 11-12 in Berlin, Dmytro Lyppa, General Director of the Gas TSO of Ukraine (GTSOU), presented competitive advantages of the Central European Hydrogen Corridor (CEHC). “Due to the repurposing of existing pipeline corridors, investment costs needed for the CEHC are significantly lower than those needed for the development of new hydrogen infrastructure. This makes the project highly competitive compared to alternative options,” Dmytro Lyppa noted. Potential Ukrainian production companies, EU-based consumers, operators of gas transmission systems, as well as financial institutions took part in the discussion of hydrogen sector prospects and investment opportunities that was held during the round table. Dmytro Lyppa informed the participants of the event about the GTSOU’s work within the CEHC project, which the Company implements jointly with gas transmission system operators of Slovakia (EUSTREAM), the Czech Republic (NET4GAS), and Germany (OGE). As the GTSOU’s General Director emphasized, the key to the successful implementation of the CEHC project is close cooperation of the parties involved, as well as the fulfillment of obligations along the value chain: from production, through transportation to consumption and financial support. Let it be reminded that in 2023 the CEHC project was included on the European Commission’s first list of projects of common and mutual interest as one that fully meets the goals of the European Green Deal. The project is meant to ensure the transportation of renewable hydrogen from Ukraine through Slovakia and the Czech Republic to Germany and other EU countries. The project is planned for implementation before 2030. #CentralEuropeanHydrogenCorridor

Directorate, collegial executive body, has been established at GTSOU 🔔 As part of the corporate governance development, the GTSOU’s Supervisory Board has agreed on the composition of the Directorate, a collegial executive body responsible for the management of the Company’s day-to-day operations. The Directorate’s establishment is a necessary condition foreseen by the GTSOU’s Charter approved by the NEURC and the Energy Community Secretariat. The first meeting of the newly established Directorate was held on June 6th. Its members included the Company’s General Director Dmytro Lyppa, Chief Operating Officer Vladyslav Medvediev and Investments and Development Director Oleksandr Tymofeev. “The Directorate’s establishment is an important step for the GTSOU’s corporate governance development. The Company’s Supervisory Board has agreed on the Directorate’s composition and is confident in effective cooperation with it,” Jan Chadam, the Acting chairman, emphasised.

Ukraine’s GTS can become an important route of hydrogen exports to the EU ↗️ The development of hydrogen projects in Ukraine has become more complicated due to the war: promising hydrogen production sites, as well as traditional generation facilities, have found themselves at risk of enemy attacks. In Europe, however, the green transformation is ongoing, and GTSOU continues to cooperate with its European partners on achieving a green future, said Kateryna Kovalenko, head of strategy at GTSOU, during her speech at the conference “From Promise to Reality: Accelerating Hydrogen Technologies in Ukraine and Beyond.” Kateryna Kovalenko noted that the European Commission has supported the initiative of European GTS operators — the Central European Hydrogen Corridor (CEHC) — and has included it on the PCI/PMI list. GTSOU is one of the operators participating in the project. The corridor’s main purpose is to transport hydrogen from promising production areas in Ukraine through Slovakia and the Czech Republic to areas of increased demand in the EU. The possibility of repurposing the existing GTS infrastructure provides this project with an important competitive advantage. “This is a signal to investors in Europe and around the world that Ukraine remains on the hydrogen map. Also, this is a signal to potential hydrogen producers for them to cooperate with international partners and develop Ukraine’s new energy capacities,” Kateryna Kovalenko emphasised.

Two Ukrainian companies joined the CEHC project as potential hydrogen producers. ECO-OPTIMA та HYDROGEN UKRAINE became the project supporters of the Central European Hydrogen Corridor (CEHC) initiative. Their projects aim to construct renewable hydrogen plants to produce hydrogen for domestic use and export to EU. Welcome to a hydrogen club! https://lnkd.in/edcJ7Z7h

GTS operators of Southeast European countries must establish attractive and competitive conditions for gas transportation from the said region to Central Europe — and do so already in 2024. Such a step will help load the GTS capacities and allow for the full integration into the European market, Andrii Prokofiev, Head of the GTSOU’s Division of Cooperation with Clients, emphasized during his speech at the “De la monopol la pija liberă” (“From monopoly to the free market”) business forum held in Chisinau, Republic of Moldova. “Moldova’s gas transmission system was particularly built for the transit of gas to Southeast European countries and Turkey, and now its capacities are only used for the needs of domestic consumers. At the same time, the operator bears significant costs for maintaining the system’s capacities, which results in high tariffs for consumers. In order to get out of this trap, Moldova needs to create attractive conditions and introduce competitive tariffs. This will help load the GTS capacities and truly integrate Moldova’s gas market into the European one,” Andriy Prokofiev stressed. Moldova is actively implementing changes in its gas market. Among other things, market liberalization and the suppliers’ expanded access thereto will be launched in 2025. According to Prokofiev, Ukraine has already undergone these processes and one of its most important lessons learned has been the need to establish an accessible, comfortable and understandable environment for as many participants as possible. Let it be reminded that within the framework of the “Vertical Corridor” initiative, GTSOU, together with the GTS operators of Romania and Moldova, are set to hold auctions for the new (increased) capacity on July 1, 2024. #gas #transportation

GTSOU announces market consultations for suppliers of mobile gas turbine power plant package. This week, the GTSOU will hold preliminary market consultations with suppliers capable of supplying a mobile gas turbine power plant package to Ukraine.   During the market consultations, GTSOU specialists will discuss with potential partners the possibilities of production, further cooperation, clarification of the procurement process and revision of the terms of the standard contract.   Please note that the Preliminary Market Consultations will be held online on 22.05.2024, at 14:00 (Kyiv time).   We will send a link to the meeting to your email addresses after registration (please send your details and additional questions to [email protected] and [email protected]).

GTSOU’s new strategy will help save around UAH 20 billion — Dmytro Lyppa Pursuant to the principles of operational transparency, Gas TSO of Ukraine (GTSOU) held a round table for international stakeholders, particularly including representatives of the European Commission, the Energy Community Secretariat, the EU Delegation to Ukraine, the Embassies of the United States, the United Kingdom and Germany in Ukraine, the International Monetary Fund (IMF), The World Bank, the European Bank for Reconstruction and Development (EBRD), the U.S. Department of Energy (DOE), and USAID Energy Security Project (ESP). GTSOU’s General Director Dmytro Lyppa presented the Company’s Strategic Development Plan and goals for 2024-2029, as well as the Company’s financial bottom line from the current regulatory period, to its international partners. The update of the GTSOU’s strategy, particularly with regard to rightsizing the gas transportation system and identifying alternative routes of gas supply, is provided for by the requirements enshrined in paragraph 69 of the Memorandum of economic and financial policies concluded with the International Monetary Fund. “Ukraine’s energy security depends on the stability of the GTSOU’s operational and financial condition. Therefore, we are already working with the changes in the Ukrainian and European gas markets, developing new transportation routes and looking for new customers. The Company’s strategy will allow to save up to UAH 20 billion until 2029. The Company is already showing positive changes: in 2023, we made it to the top five most profitable companies of Ukraine, as well as paid record dividends to the state this year,” Dmytro Lyppa noted. “We thank our foreign partners for supporting our country’s energy complex in the difficult times of the Russian invasion, as well as for paying attention to the work of the independent GTS operator of Ukraine. Today’s event is another proof of the Ukrainian side’s compliance with its obligations, in particular with regard to the GTSOU’s implementation of the Memorandum’s respective clause. We are also grateful for the positive independent assessment of the Company’s new strategy. We count on further support from our foreign partners and hope for their fruitful and long-term cooperation with the Operator in these difficult times for Ukraine,” Ukraine’s Deputy Minister of Energy Svitlana Grynchuk said. More details are available at the link: https://cutt.ly/JerO9xxN

Andrii Prokofiev at the Ukraine-Europe Energy Trading Forum On June 4th, 2024, in Budapest, Hungary, join Energy Club's pivotal business forum "Ukraine-Europe Energy Trading". Andrii Prokofiev, Head of the Division of Cooperation with Clients of the Gas TSO of Ukraine, will engage in a vital panel discussion "Ukrainian Gas: Security, Transit, and Future Prospects". Key Topics: ✓ Integration of Ukrainian gas storages with European markets: Opportunities and challenges. ✓ Trends and future prospects for the Ukrainian gas transmission system. ✓ The impact of geopolitical conditions on the security and reliability of gas transit through Ukraine. Join this engaging dialogue to gain insights into the critical role of Ukrainian gas in ensuring European energy security.