Storage System Operator of Ukraine is preparing for transition to gas metering in energy units

Ukrtransgaz – Storage System Operator of Ukraine (hereinafter – the Operator) has been implementing the program for preparation to transition to gas metering in energy units, which is scheduled for May 1, 2022.

The program envisages updating the Operator's own technology park and IT tools.

In addition, it includes joint work with the NEURC to bring the regulatory framework in line with requirements of the Law on Transition to Energy Units.

We would like to mention that recalculation of the amount of ordered storage services and the volume of natural gas to be stored in underground storage facilities as of May 1, 2022, will be carried out using the 10,595 kWh/cubic meter coefficient. This figure is fair and was obtained as a result of extensive discussions between market participants, authorities, and the Storage System Operator of Ukraine.   

In recent years, the Storage System Operator of Ukraine has been updating the UGS network equipment, so that it is possible to keep gas records in energy units and thoroughly monitor the quality of gas supplied from/to the main gas pipelines. In particular, work is underway to set up modern chromatographs and moisture meters in UGS. It is also planned to build new gas metering units at 9 underground gas storage facilities in 2022-2025.

For more than a year now, a special ASK-2 software package has been used in the operation of gas storage facilities, due to which gas is accounted for in energy units on the UGS technological equipment. Since April 2021, the volume of gas in the Operator's Information Platform has been accounted for in two units of measurement – in volume units and energy units for customs clearance purposes. However, its functionality will be improved for the full-fledged accounting of natural gas in energy units.

In addition, in order to harmonize the NEURC’s regulatory acts with Law No. 1850-IX, Ukrtransgaz has been preparing proposals for amendments to the Gas Storage Code and the Standard Contract for Natural Gas Storage (injection, withdrawal), required for a full-fledged transition to accounting and calculations for the natural gas volumes in energy units. 

“Transition to energy units is an important step for Ukraine on the path to gas European integration. We at the Storage System Operator have been preparing for this reform in advance, and now we are entering the final stage of transformation to make the transition timely, efficiently, and correctly,” – said Sergii Pereloma, Acting General Director of Ukrtransgaz.

We would like to mention that transition to gas metering in energy units (instead of current volume units), according to the recently adopted Law of Ukraine “On Amendments to Certain Laws of Ukraine on Introduction of Accounting and Calculation for Gas Volumes in Energy Units” of November 02, 2021 No. 1850-IX, will be held on a once-only basis on May 1, 2022, at the beginning of the gas day. At this point, all gas balances – both the amount of ordered storage services and the volume of natural gas to be stored in underground storage facilities – will be automatically converted from cubic meters to kWh.