Romanian and Ukrainian gas operators sign memo on reverse flow

Romania’s natural gas transmission system operator Transgaz has signed a memorandum of understanding with its Ukrainian peer Ukrtransgaz to develop north-bound physical deliveries, the Transylvania-based company confirmed on Wednesday.

The memo will lead the two operators to “cooperate with a view of concluding interconnection agreements and of jointly investigating technical solutions for physical reverse flow”.

Transgaz said this work had only recently started and was currently ongoing.

No details were given as to how soon Ukraine would be able to import from its southern neighbour.

Last month, Ukrtransgaz said talks between it and Transgaz had started. The country is looking to buy 1-2 billion cubic metres/year from Romanian suppliers (see ESGM 19 May 2015).

The two countries share two cross-border points, Isaccea and Mediesu Aurit, which according to Uktransgaz already have the capability to deliver north-bound gas, on its side of the border. Upgrade work to either point would therefore only have to happen on the Romanian grid.

The massive Isaccea point is divided into three pipelines. The capacity on two these lines is booked entirely by Russia’s Gazprom so it can transit flows through Romania onward to Bulgaria, Greece and Turkey.

The two contracts booked by Gazprom will expire in 2015 and 2023. The third contract was booked by Bulgargaz and will come to an end in 2016.

The expiry of the 2015 Gazprom contract will allow Transgaz to start reverse flows into Ukraine.

Ukraine is able to import from the three other EU countries to which its grid is interconnected. While east-bound flows from Poland and Hungary are currently dormant, Slovakia is exporting around 26 million cubic metres/day. tom.marzec-manser@icis.com