Kiev approves EU’s third energy package for natural gas

The Ukrainian parliament on Thursday approved natural gas market legislation to align the country with the EU’s third energy package, the Energy Community and incumbent Naftogaz have said.

The law which, will be applicable from 1 October, states wholesale activity will not be subject to licensing.

Adoption of the package will require the unbundling of gas infrastructure from supply. This will mean Naftogaz will have to be separated from subsidiary Ukrtranzgaz, the transmission and storage system operator.

The law does not, however, allow for the privatisation of the gas network, which will remain in the hands of the state.

Naftogaz said that it welcomed the adoption of the law.

Equal third-party access will also have to be granted to counterparties once the law has been phased into Ukraine’s regulation and governing codes.

On Wednesday, Ukraine’s government called upon the legislature to adopt the proposed reform the following day. As part of the new gas market law, private shippers would be required to pay for what they flow through the Ukrainian transmission and distribution network, the government said.

Also on Wednesday, Ukrtranzgaz said that it was developing a new transmission code that would be compliant with the law.

The Energy Community has been working alongside Ukrainian authorities for the past year to bring the legislation to parliament.

Janez Kopac, secretariat director at the Energy Community said: “The next challenge for Ukraine will be the law’s implementation in practice. I confirm that the Secretariat’s support will not fade in this next phase.” Tom Marzec-Manser