gk-press.if.ua
Ukrtransgaz earlier said it was unable to ensure timely payments for personal purpose gas due to a shortage of funds.
National Joint-Stock Company Naftogaz of Ukraine, which owns the state-run gas transmission system operator Ukrtransgaz, says the reason for the latter's financial difficulties lays in the reduced gas transmission tariffs and critical shortcomings of the Ukrainian Gas Transmission System Code (GTS Code) allowing unauthorized gas withdrawal by regional gas distribution companies.
"The teams of NJSC Naftogaz of Ukraine and Ukrtransgaz many times warned about the destructive effect of several decisions made by the National Energy and Utilities Regulation Commission [NEURC] on the financial stability of the Ukrainian GTS operator. Among them is a reduction in gas transmission tariffs from May 2019 and critical shortcomings of the GTS Code," the Naftogaz press service said on June 24.
The existing norms of the Code allow unauthorized withdrawal of significant volumes of gas by regional gas distribution companies.
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For six months already, there has been a risk of Ukrtransgaz going bankrupt as a result of such situation, the press service said, referring to Naftogaz CEO Andriy Kobolyev.
"Naftogaz supported Ukrtransgaz as long as it was possible, as we are their largest creditor. However, this is no longer possible. We must accumulate gas in underground storage facilities [USFs], while we ourselves have a working capital deficit," the press service quoted Kobolyev as saying.
Naftogaz added that Ukrtransgaz had submitted proposals on changing temporary tariffs. However, they have not been considered yet. As a result, the company is unable to purchase gas to pump it through the GTS.
"Ukrtransgaz, Naftogaz, and the National Security and Defense Council are working on urgent measures to ensure the stability of the Ukrainian GTS. A comprehensive adjustment of the situation is possible only under the condition of the pro-active moves by the NEURC," the press service added.
As was reported, Ukrtransgaz earlier said it was unable to ensure timely payments for personal purpose gas due to a shortage of funds, which threatened the Ukrainian GTS's operations after June 24.