6. Service Level Agreement (SLA). How does JSC Ukrtransgaz and LLC Gas TSO of Ukraine cooperate?


From July 1st, 2019 the last stage of the Ukrainian GTS Operator unbundling project has commenced.  In the second quarter of the ongoing year exploitation and technical maintenance of GTS performs by LLC Gas TSO of Ukraine – the future independent operator model.  The client is JSC Ukrtransgaz – current GTS operator.


Agreement for technical maintenance (SLA – Service Level Agreement) regulates the cooperation between client (JSC Ukrtransgaz) and contractor (LLC Gas TSO of Ukraine).


JSC Ukrtransgaz cooperates with gas suppliers (transportation services clients) and performs physical and commercial dispatching of gas transportation system. JSC Ukrtransgaz carries out purchase of goods and services, needed for the natural gas transportation activity.


In its turn, LLC Gas TSO of Ukraine ensures the performance of the dispatching office orders with the aim to support gas transportation within Ukraine and its transit from Russia to EU, and current maintenance of the system. Works are performed by over 9,5 thousand employees transferred from Ukrtransgaz during July 2019.


Service branches within the Ukrtransgaz continue to perform capital investment projects, needed for support of GTS reliability.


Based on the concluded Service Level Agreement LLC Gas TSO of Ukraine monthly receives the payment based on the works delivery and acceptance act.


From the January 1st,2019 from the beginning of its independent work, LLC Gas TSO of Ukraine will start to solely maintain gas transportation assets  and procure services of subcontractors according to the current public procurement legislation. Consequently, the Service Level Agreement between JSC Ukrtransgaz and LLC Gas TSO of Ukraine will not be needed.