Ukraine, Romania strike deal to unblock gas imports via Trans-Balkan corridor

Ukrainian and Romanian national pipeline operators signed a technical agreement for gas transmission under European rules from January 1, 2020.

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Gas Transmission System Operator of Ukraine company and the Romanian Transgaz operator have sealed a deal on cooperation in accordance with European regulations, which will allow transmitting 17.8 million cubic meters of gas daily on the Ukraine-Romania route and 15.8 mcm – in the opposite direction.

That's according to a statement released by Gas TSO of Ukraine, referring to its CEO Serhiy Makogon.

The deal effectively unblocks the Trans-Balkan corridor, the statement says.

This means all suppliers have the opportunity to freely transmit gas via a new supply route – from Southern Europe and Turkey – through Bulgaria and Romania – to Ukraine and further to Moldova.

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"This is a historic and extremely important decision because it allows setting up an additional route for gas imports to Ukraine, primarily to provide gas to consumers in Moldova and consumers in border areas of Ukraine in Odesa region. This will allow for uninterrupted winter supplies even amid possible termination of gas transit by Russia," the statement says.

According to the press service, previous conditions did not allow transmitting natural gas in reverse flow, since such an opportunity was blocked by the existing transit contract between Naftogaz and Russia's Gazprom. After the contract expires, from January 1, 2020, the restriction will be leveled and Gas TSO of Ukraine will be able to cooperate with the Romanian counterpart in line with European rules.

"Moreover, the new agreement creates an additional technical opportunity for Moldova to receive alternative gas imports for its own needs from Turkey and Greece if Gazprom halts transit to Europe via Ukraine," reads the statement.

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