Ukraine now among Europe's TOP20 gas hubs

"Ukraine for the first time has entered Europe's TOP 20 gas hubs in the rating compiled by the European Federation of Energy Traders (EFET). It took the 18th spot. For the first time, EFET included Ukraine in the annual review of gas hubs," the company said, adding that Ukraine got 3.5 points and ceded to such high liquidity gas hubs as NBP (UK), TTF (the Netherlands), NCG (Germany), and outrunning Bulgaria and Romania, the countries that had started the process of gas market liberalization much earlier than Ukraine.

Read alsoUkrtransgaz boosts investment in modernization of gas transport system by 18.2%According to Naftogaz, the country needs to set tariffs for the gas transmissions system's internal entry/exit points to improve its position in the rating, as well as introduce GTS's daily balancing, and develop gas trade within it.

"The adoption of the draft amendments to the GTS Code, which was developed by [the state-run gas transport system operator] Ukrtransgaz and submitted to Ukraine's National Energy and Utilities Regulation Commission, will help the Ukrainian hub significantly improve its positions and rise in the next EFET review," the press service said.

As UNIAN reported earlier, in mid-November, Deputy Prime Minister of Ukraine Volodymyr Kistion stated the ultimate goal of reforming the Ukrainian gas market was the creation of the Eastern European gas hub with an annual turnover of about 215 billion cubic meters based on the capacities of the Ukrainian GTS and underground gas storage facilities (USFs) within 10-15 years.

Read alsoNaftogaz CEO: Contracts with Gazprom not worth paper usedOn November 27, Naftogaz CEO Andriy Kobolev said that in order to create such a hub, it is necessary to introduce European legislation, in particular, to make appropriate changes to the GTS Code. The second condition is the completion of the litigation between Naftogaz and Russia's gas monopoly Gazprom in the Arbitration Institute of the Stockholm Chamber of Commerce.

UNIAN memo. The hub is a point (region) in which several pipelines, that is, directions of gas supplies, can converge. Gas trade and storage services, for example in underground storage facilities, can also be provided there. Ukraine has 12 USFs, used only by 50-55% of their capacity, as well as the most powerful gas transmission system in Europe.