Gas transit via Ukraine to drop by 15 bcm in 2020 over TurkStream launch – Ukrainian GTS operator

On January 8, Presidents of Russia and Turkey Vladimir Putin and Recep Tayyip Erdogan announced the official launch of the TurkStream gas pipeline bypassing Ukraine along the bottom of the Black Sea.

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CEO of Gas Transmission System Operator of Ukraine (GTSOU) LLC Sergiy Makogon has said gas transit through Ukraine will decrease by 15 billion cubic meters (bcm) in 2020 as a result of the launch of the TurkStream pipeline, since a number of Balkan countries will no longer receive gas through Ukraine.

"TurkStream is a project without economic meaning, but with a large political component," he wrote on Facebook.

"Unfortunately, we could not hold it. We have already felt its influence. Gas transit via Ukraine in the Balkan direction from January 1, 2020 is being carried out to cover the needs of Romania and Moldova only. Bulgaria, Turkey and other countries in the region no longer receive gas through Ukraine. As a result, the decrease in transit via Ukraine will stand at about 15 billion cubic meters this year," he said.

According to Makogon, the Ukrainian operator is looking for new opportunities to use the existing gas pipeline infrastructure.

"We are looking for new opportunities to use the existing infrastructure (Trans-Balkan gas pipeline) and have achieved the creation on its basis of a new corridor for gas supplies to Ukraine from Bulgaria, Turkey and Greece in the amount of up to 15.8 million cubic meters per day. We count on test deliveries in January," he said.

Read alsoPutin, Erdogan attend ceremony to formally launch TurkStream gas pipe bypassing Ukraine

Also, Makogon said a new direct agreement on cooperation between the Polish and Ukrainian GTS operators at the Drozdovychi point has been effective since year-start. Previously, this gas pipeline was exclusively used by Russian Gazprom to supply gas to Poland via Ukraine.

"Main innovations: Gazprom is no longer present at this gas metering station, while GTS operators operate directly in accordance with European rules. Capacities for this gas pipeline are available to all customers of services, and not just to Gazprom. Both for export and import," he said.

Makogon emphasized the new agreement allows a virtual reverse flow, when it is actually possible to import into Ukraine the entire volume of outbound gas without the need to physically export it first.

"We have been fighting for the possibility of virtual reverse since 2014, as it significantly expands the possibilities for deliveries to Ukraine and increases the level of security of deliveries to the country," Makogon added.

Read alsoBenefits of "pump or pay" principle: Ukrainian GTS operator reports on Russian gas transit volumes

As UNIAN reported earlier, gas transit through the Ukrainian GTS in 2019 amounted to 89.58 billion cubic meters.

On January 8, Presidents of Russia and Turkey Vladimir Putin and Recep Tayyip Erdogan announced the official launch of the TurkStream gas pipeline bypassing Ukraine along the bottom of the Black Sea.

UNIAN memo. TurkStream is a transit-free export gas pipeline laid from Russia to Turkey under the Black Sea and further to the Turkish border with neighboring states. The first string of the pipe is intended for the Turkish market, while the second one – for gas supplies to the Southern and Southeast Europe. Each string has an annual capacity of 15.75 bcm.

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