Ukrainian TSO hopes for short-haul tariff launch in Q2

Julie Fisher

16-Feb-2017

A short-haul gas transmission tariff should be available in Ukraine in the second quarter of 2017, grid operator Ukrtransgaz’s executive director Sergiy Makogon has said.

The short-haul tariff would in essence allow shippers in either Poland, Slovakia or Hungary to ship gas between their respective hubs, using the Ukrainian grid.

It was proposed in summer 2016, and received a favourable response in a market survey. Makogon said the tariff was being discussed with the country’s energy regulator NERC but that Ukrtransgaz hoped to be able to offer it from the second quarter of 2017.

In previous discussions, the operator had hoped to be able to offer it as early as January 2017.

The tariff would be applicable only to border points on which Russia’s Gazprom does not have a key presence. For this reason, only Poland’s Hermanowice, Slovakia’s Budince and Hungary’s Beregdaroc would be covered by it.

The short-haul tariff would not allow counterparties to access the virtual trading point in Ukraine, only to book firm and interruptible capacity in the Ukrainian transport system.

The current entry tariff for Ukraine is $12.47/thousand cubic metres (kcm) for cross-border flows, but Makogon previously said that the short-haul tariff would provide a significant discount to this. julie.fisher@icis.com

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