Regulator improves procedure for gas storage, pumping, withdrawal at Ukrainian UGS facilities

MOSCOW. April 9 (Interfax) - The customers of Ukrainian underground gas storage facilities (UGS) will be able to pump in and out their gas at a convenient time and in a convenient way from June 1, 2024, Ukrainian media reported, citing a statement by Naftogaz Group.

The latter refers to the resolution of the National Commission, which is carrying out state regulation in the energy and public utilities sectors, regarding the introduction of amendments to the Gas Storage Code dated April 3.

"We are seeking to substantially increase the amount of fuel that foreign companies are storing in our UGS facilities this year. The new conditions are an important factor that affects our attractiveness for foreign traders," Naftogaz Ukraine CEO Alexei Chernyshov said.

From now on, customers of gas storage services will be able to book guaranteed capacities not only for a year of storage, but also for any number of months during the year, it said. Access to gas storage facilities will also be granted with the right to pump, store, withdraw the same volume of gas during the gas day.

Additionally, the relevant commission's resolution extends the periods of gas storage capacity distribution, provides a greater choice of products, in particular, guaranteed and conditionally guaranteed capacity products for a period of less than one year, and optimizes the interaction process for capacity booking.

"The adoption of this resolution is a requirement of timing and is particularly relevant for European customers as they need to diversify their natural gas supply sources. These changes will increase the revenue from the operation of storage facilities for Ukraine at unchanged tariffs," the regulator said on its website.

The new conditions are also profitable for European consumers, as storage and maintenance tariffs in Ukrainian storage facilities are lower than in the European Union member states.

The commission's draft resolution of April 3, 2024 has passed the regulatory procedure stipulated by the legislation and was positively evaluated by the Energy Community Secretariat. The resolution will take effect on June 1, 2024.