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The next stage of TSO unbundling is completed: SSO brunch is created

December 17, 2018, Kyiv – The newly created branch "System Storage Operator of Ukraine" announces the successful completion of the employees and necessary assets transfer to it. This step finalizes the next stage of the TSO unbundling.


The SSO brunch will provide natural gas storage services and ensure efficient and uninterrupted work of the 11 underground storage facilities.


To the new brunch from the Ukrtransgaz structure were transferred 2,000 employees together with a number of operations and maintenance departments for the unground gas storage throughout Ukraine, namely Proletarsky (Kharkivtransgaz), Myrne (Kyivtransgaz), Bogorodchansky (Prykarpatransgaz), Dashawskoe, Oparske, Stryy and Uhersky (Lvivtransgaz).


Bohdan Maksymchuk is assigned as the Head of the branch “System Storage Operator of Ukraine.” The new Head priority task is to complete the full separation of the gas transportation and gas storage to prepare the autonomous operation of this unit after the legal separation of the gas transportation function from 01.01.2020.


«Successful completion of the TSO unbundling is our common strategic goal. To achieve it we understand we need correctly and timely finish every of the planned stages of the project. As of today, we are moving according to the schedule – the SSO was created”, said Pawel Stanczak, General Director of the brunch "TSO of Ukraine" Ukrtransgaz JSC.


During the work on the project of the gas storage function separation into the autonomous business unit, from September to December 2018 in Ukrtransgaz the largest-scale restructuration has been carried out for the past 20 years. 


Thus, there are four branches formed that are responsible only for the gas transportation and lately will be integrated into the branch "TSO of Ukraine” until 01.06.2019, which in turn will be legally separated from Ukrtransgaz JSC on January 1, 2020.


About branch “TSO of Ukraine”


Branch “TSO of Ukraine" was created on December 1, 2017. Currently, 292 specialists are working in the TSO office and providing operational, financial, commercial and legal services to ensure gas transportation and balancing services, planning, purchasing, and cooperation with TSO operators from other countries.


Later, in September 2018, a Memorandum of Understanding was signed between the Supervisory boards of Naftogaz and MGU and a Roadmap regarding the unbundling of Ukraine’s gas transmission system operator (TSO) is agreed.


The action plan according to the Roadmap consists of three main stages, where every stage has clearly defined criteria for success and timeframe. To achieve the ultimate goal the full legal separation of the TSO and to prepare an attractive structure for the involvement of partners, it is necessary to separately allocate the function of underground storage of gas within the structure of Ukrtransgaz. The next stage is to optimize and supplement the branch of TSO with all necessary business processes, assets and employees to ensure all conditions for the successful completion of certification of an independent TSO before 01.01.2020.