GTS of Ukraine is operated by less than 20% of its design capacity

The GTS operator earns on the type of activity on which it, according to European norms, should not earn.

The gas transportation system of Ukraine (GTS of Ukraine) operates less than 20% of its design capacity, and its maintenance is very expensive for customers of transportation services.

This was stated by the head of scheduling of the company “IE Energy” Vladimir Gnoevy during the Ukrainian Gas Open forum.

“In total, our GTS can transport about 400 billion cubic meters of gas. At the same time, Ukraine transports about 30 billion cubic meters for consumption and transit is about 40 billion. That is, we see that the gas transmission system is operated by less than 20% of its design capacity.” he said.

Volodymyr Hnoevyi noted that inefficient management of the gas transmission system leads to significant financial losses.

“Today, the maintenance of excess capacity is fully covered by transit funds. In case of non-renewal of the transit contract with Russia after 2024, all this financial burden will fall on the shoulders of domestic consumers,” said the expert.

The expert added that the GTS Operator of Ukraine last year earned UAH 47.5 billion from international activities and UAH 10 billion from the provision of transportation services in the domestic market, of which UAH 4 billion was received for the provision of balancing services.

“Of the 10 billion earned by the GTS Operator in the service of gas transportation for domestic customers, 4 billion he earned on the settlement of daily imbalances. That is, ODTSU actually earns on the activity in which he, according to European norms and rules, should not earn.” , – Vladimir Gnoevy emphasized.

To address these issues, he proposed the creation of an independent Market Operator, which would take over some of the functions that do not belong to the powers of the GTS Operator, namely – the administration of the gas market.

“This will increase transparency for service customers and in the future, along with the redesign of the GTS, will minimize the financial burden on market participants, which will ultimately affect all gas consumers in Ukraine,” – said Vladimir Gnoevy.

Earlier, the head of the Association of Energy Suppliers Artem Kompan said that the existing balancing system in Ukraine is detrimental to both suppliers and the development of the market as a whole. According to him, against the background of draconian marginal prices from ODTSU, companies do not have the ability to respond quickly and close emerging imbalances.

We will remind, on May 12, 2021 The North-West Commercial Court of Appeal upheld the appeal JSC “Khmelnytskgaz”, which was the defendant in the lawsuit of LLC “Operator of the gas transmission system of Ukraine”. ODTSU failed to prove in court that the company has taken action to resolve the imbalance, as required by the provisions of Section XIII and Section XIV of the GTS Code. According to the court, the opacity in the actions of ODTSU may indicate the concealment of the lack of balancing actions, for which the payment to customers of gas transportation services is charged.

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Source: Інформаційне Агентство УНІАН by

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