joint stock company Naftogaz of Ukraine, the operator
of the Ukrainian gas transport system Ukrtransgaz
jointly with the company Snam S. p.A.
(Italy) and Eustream a.s.
(Slovakia) signed a Memorandum of understanding on the joint assessment of opportunities
for cooperation in the operation and development of the gas transport system (GTS)of
document was inked in the presence of Minister of Energy and Coal Industry of
Ukraine Ihor Nasalyk, EU
Commissioner for Energy and Climate Change Miguel Arias Cañete
and Minister of Economic Development of Italy Carlo Calenda.
on the signing of the MoU, Prime Minister of Ukraine Volodymyr Groysman said that the
Memorandum reaffirms the interest in the Ukrainian GTS by the key operators of the
GTS of Europe, in particular Snam and Eustream. "The signing of the Memorandum will allow already
now to use the experience and knowledge of foreign partners to transform the
Ukrainian gas operator in line with European standards. Such cooperation is an
important signal proving the confidence in Ukraine and confidence in the
importance of our gas transmission system", said the Head of Government.
he added that the interest in cooperation had been expressed by other European
operators, and the best proposal would be determined on a competitive basis, at
that the final decision regarding a possible partnership, according to the law
"On the Natural Gas Market", would be taken by the Ukrainian
The inked Memorandum
is a document aimed at maintaining long-term sustainability of natural gas
transmission through the territory of Ukraine in accordance with the standards
of the European markets, and ensuring the safe and effective use of Ukraine's
GTS, the transparent and non-discriminatory Third Party Access basis in compliance
with the applicable law.
Memorandum, the companies will undertake a joint assessment of the
possibilities for the use and enhancing the gas transport network of Ukraine to
make it more efficient, modern and competitive.
be noted, Ukraine engages in the unbundling of the transmission system operator
the incumbent Naftogaz, the state-owned holding of a vertically
integrated group of entities, and expressed interest in cooperation with
the experienced Western GTS operators in the use of the national transmission
system in accordance with the Law of Ukraine "On Natural Gas Market".
implementation of this project is aimed to help to increase liquidity and
security of supply for the gas markets of both Ukraine and the EU, which fully
meets the Strategy of Energy Security of the EU.
Naftogaz of Ukraine is the national vertically integrated company engaged in
full cycle of operations in O&G exploration and production, transport and
storage, supply of natural gas and LPG to consumers. In 2016 the Group
accounted for 79% of total gas production in Ukraine (15.9 bcm
vs. 20.1 bcm), 74% of gas imports to Ukraine (8.2 bcm vs.11.1 bcm) and 82 bcm of gas transit to Europe (46% of total supplies of
Russian gas to Europe). Naftogaz is the sole
shareholder of Ukrtransgaz. Naftogaz
is committed to be the leading engine of modernization and professionalism of
the Ukrainian energy sector, integrated with the European market, ensuring
security of supply and competitively priced energy while maximizing value of
Ukrtransgaz is the operator of one of the most powerful gas transmission and
storage systems in the world. GTS entry capacity is above 302
bcm/year, exit capacity in the European
direction is over 151 bcm/year and storage capacity
is 31 bcm. Ukraine's GTS links the systems of the
neighboring Russia, Belarus, Poland, Slovakia, Hungary, Romania and Moldova.
Through them it is integrated into the wider European gas network remaining the
shortest and the most efficient transit route and the essential element of
security of supply in the region.
Snam operates and develops Europe’s largest, most accessible pipeline
network (which extends for more than 40,000 km), the largest storage
infrastructure in Europe (19 bcm capacity) and one of
the first LNG terminals built in Europe. Snam’s
investments across Europe aim to facilitate the European energy union network
integration and to promote gas as a key pillar of a sustainable energy mix.
Leveraging its expertise and core competencies, the Company has recently
launched Snam Global Solutions to deliver studies,
consulting and project management activities to the market.
Eustream is the owner and operator of one the largest gas transmission systems
in the European Union. Eustream’s mission is to
transport natural gas in Slovakia and through Slovakia to the European markets.
Eustream is a long-term partner to Ukrainian gas
transmission system by being directly interconnected with Ukraine in both
natural gas flow directions.