Ukrtransgaz and GAZ-SYSTEM S.A. launch non-binding market screening procedure for the capacity at the Poland-Ukraine border
6 April 2018, Kyiv/Warsaw – PJSC “UKRTRANSGAZ” and GAZ-SYSTEM S.A., gas transmission system operators of Ukraine and Poland respectively, launch the non-binding market screening procedure.
By conducting this non-binding market screening procedure both TSO's aim to estimate the level of market participants’ demand for the Capacity at the Poland-Ukraine border and to create basis for further enhancement of the integrity of the regional markets through expansion of the Polish and Ukrainian gas transmission networks.
Early estimations of the TSOs show that firm capacity could be available to the market from 1 January 2020, therefore a Non-binding market screening procedure for the Capacity at the Polish-Ukrainian Border shall cover the period of 15 years starting from Gas year 2019-2020, taking into account that the capacity in Gas Year 2019-2020 will be available from 1 January 2020 until 1 October 2020.
Vice-President of PJSC “UKRTRANSGAZ” Pawel Stanczak commented that after the expiration of the gas transit contract between NJSC “Naftogaz of Ukraine” and PJSC “Gazprom” in the end of 2019, the TSOs are going to implement EU rules on all interconnectors and establish a single virtual interconnection point, which would combine capacities of the existing physical interconnection points.
The results of the market screening procedure shall constitute the basis for the TSOs decision on the future binding allocation procedure (Open season) for the firm capacities at the Poland-Ukraine border, in both directions of the flow. The demonstrated market interest will be the basis for the decision on building of the new interconnection.
If the market interest during the binding phase is confirmed, the final decision on expansion of the bidirectional gas flows between Poland and Ukraine may be taken.
Enhancement of the bidirectional gas flows between Poland and Ukraine would significantly contribute to the implementation of the European Union’s strategic aims of improving energy security and market integration.
“The market assessment may result in a further enhancement of the integrity of the regional markets through expansion of the Polish and Ukrainian gas transmission networks” – Mr. Stanczak noted. – “The new interconnector would provide Ukraine firm access to the Polish LNG terminal, in the same time Polish traders would get firm access to the huge Ukrainian gas storages, as well as firm connection to other countries via the GTS of Ukraine.”
In order to participate in the assessment, market participants shall fill in «Capacity request form» in accordance with the Rules of the market screening and send the filled-in form to PJSC “UKRTRANSGAZ” and GAZ-SYSTEM S.A. in the period between 6 April and 30 April 2018 to the addresses specified in the Rules.
PJSC “UKRTRANSGAZ” and GAZ-SYSTEM.S.A. will assess the received capacity request forms and will publish the results of the assessment by the 30th of May 2018.
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