Operators from Poland and Ukraine in talks to increase gas transmission

Ukraine’s critical infrastructure could become a target of Russian attack again, especially as winter approaches. Poland’s role may prove crucial, as it can provide Ukraine with a steady supply of gas, but over time it may be beneficial for both sides.

Poland could provide Ukraine with gas from the LNG terminal in Świnoujście and from the Norwegian shelf via the Baltic Pipe. According to Gaz-System, however, this will require a change in the operation of the transmission system. The connector through which gas came from Ukraine to Poland, can work the other way.

The incremental capacity project proposal was developed by Poland’s Gaz-System and Ukraine’S GTS in response to non-binding demand submissions received during the incremental capacity market demand assessment conducted between 3 July and 28 August 2023.

The consultation document includes a description of the incremental capacity design, including the proposed technical solution, the cost estimate, the preliminary schedule, the level of supply for the associated capacity product and the general terms and conditions for participation and access to incremental capacity required by both operators in the annual product auction.

The Poland-Ukraine gas pipeline is expected to be built by 2023 and will deliver more than 5 billion cubic meters of natural gas annually to Ukraine. The project is awaiting for the final investment decision.

Gaz-System is a strategic company for the Polish economy. It is responsible for the transmission of natural gas, manages the most important gas pipelines in Poland and owns the President Lech Kaczyński LNG terminal in Świnoujście.

Ukrainian GTS is a company that has a monopoly on the domestic market, providing transportation of natural gas to customers in Ukraine and the countries of the European Union. The company was established in 2019 to fulfill international obligations to the Energy Community in order to ensure the independence of the Gas Transmission System Operator in Ukraine.

GTS is a certified Gas Transmission System Operator of Ukraine and fully independent of vertically integrated companies.