Ukrainian traders start importing gas from Europe via Moldova - GTS Operator of Ukraine

MOSCOW. Feb 7 (Interfax) - Following foreign traders, Ukrainian gas traders have also begun importing gas from European countries via Moldova, subsequently pumping this gas to underground storage facilities in Ukraine, Ukrainian media said on Monday, citing the website of the Gas Transmission System (GTS) Operator of Ukraine.

"Today, Ukraine can conduct backhaul gas transactions with all operators of the GTS in adjacent European countries. The key condition is the presence of the resource in the system," the company said.

The aim of gas backhaul is to optimize the transport operations of GTS operators, including in the presence of demand for transport services across the border in both directions, it said. In this case, operators conduct physical transportation only in one direction, while the backhaul option is used during the transportation of gas in the other direction.

"Thus, fuel does not physically cross the border, but the parties have a reciprocal offset. It is one of the most progressive commercial methods of the European gas market. It has its obvious advantages such as fuel gas saving and smaller CO2 emissions," the company said.

GTS Operator of Ukraine acting general director Pavel Stanchak said, according to the press release, that last year Ukrainian gas storage facilities acted as a buffer between seasonal demand and supply peaks and ensured the required flexibility of European countries' energy systems during renewable energy use.

"GTS Operator of Ukraine together with JSC Ukrtransgaz [the operator of Ukraine's gas storage facilities] continues offering short haul and 'customs warehouse' services to traders. We offer our partners cooperation that will strengthen the energy market of Europe and will contribute to Ukraine's further integration," Stanchak said.

As reported, the Moldovan government approved legislative amendments in January 2023, allowing all interested companies to take advantage of the backhaul (virtual reverse) service using the connection to the Grebeniki point of Ukraine's gas transmission system and enabling international partners of the GTS Operatior of Ukraine to keep gas delivered from LNG terminals in Greece or Turkey at Ukrainian underground storage facilities.