REUTERS
The estimated value of the GTS was assessed by an independent, licensed, and professional appraiser – an international company from the Big Four.
CEO of National Joint-Stock Company Naftogaz of Ukraine Andriy Kobolyev has announced the price of Ukraine's gas transmission system (GTS) estimated at about UAH 34.5 billion (US$1.5 billion), provided there is no gas transit through Ukraine from January 1, 2020.
Read alsoNaftogaz to lose US$555 mln in net profits over GTS unbundling – Kobolyev
"Here [on the slide] we give the estimated value of the state-owned property [Ukraine's GTS], which was assessed by an independent, licensed, and professional appraiser – an international company from the Big Four [Deloitte, PwC, Ernst & Young, and KPMG]. Much to my surprise, for some reason, it's neither US$300 billion nor US$30 billion, but US$34 billion," he said at a conference on the GTS unbundling on December 18.
Kobolyev added that the price was determined by the income approach, that is, by assessment of the economic effect that the GTS owner can receive, given the basic assumption about the functioning of the GTS in the near future.
"The main assumption that made this figure so lower than the one usually mentioned by politicians is the absence of a [gas] transit contract with Gazprom, as well as its statements and intention to stop gas transmission through Ukraine," he said.
"This is the figure that more or less reflects the real cost of the GTS if it is not used in transit mode, but used in the mode of gas supplies to consumers," Kobolyev added.
As UNIAN reported earlier, in early November 2016, the Cabinet of Ministers adopted a decision on the creation of a new operator of Ukraine's gas transmission system (GTS), namely PJSC Magistralni Gazoprovody Ukrainy [Trunk Gas Pipelines of Ukraine]. At the same time, Naftogaz management created a new subsidiary, the Operator of the Ukrainian GTS, within the structure of Ukrtransgaz.
The Operator of the Ukrainian GTS will be separated from Naftogaz on January 1, 2020, as part of unbundling (splitting of the company into constituent businesses) and transferred to Magistralni Gazoprovody Ukrainy's management, subordinated to Ukraine's Finance Ministry.