Ukrainian, Polish gas transport operators conclude memorandum to enhance integration of gas markets

MOSCOW. March 17 (Interfax) - The Gas Transport System Operator of Ukraine (GTSOU) and Poland's Gaz-System have concluded a memorandum of cooperation to improve collaboration between the Ukrainian and the Polish gas market, Ukrainian media said with reference to the GTSOU press service on Thursday.

The parties intend to increase long-term guaranteed capacity on interstate junctions and eliminate barriers for transboundary trade in gas (particularly renewable gases), which would require adjusting gas quality parameters between the countries.

"The parties to the memorandum will set up a research platform for transporting renewable gases, such as bio-methane and hydrogen. They will explore routes and possibilities of the Ukrainian and Polish gas transport systems for transporting renewable gases to Europe, as well as determine and implement pilot projects for producing and transporting bio-methane and hydrogen. In addition, the Ukrainian gas transport system will be connected to the EU hydrogen transport corridor," the GTSOU said.

The operators will also analyze prospects of transporting LNG between Poland and Ukraine, with the possible use of Ukrainian storage facilities for enhancing regional security, and will promote available routes and sources of supplies to Ukraine to increase the use of the existing gas infrastructure, such as Baltic Pipe and the interconnectors with Lithuania and Slovakia.

The GTSOU and Gaz-System also agreed to arrange regular meetings of shippers to receive feedback regarding transboundary events, which would enable the operators to evaluate a market interest in new capacities between the two countries, gas transportation, and the use of underground gas storage facilities.

The Ukrainian and Polish operators also agreed to work together on arranging negotiations with the European Commission on financing common projects.

"The combination of the Ukrainian and Polish capability in the gas sector will strengthen Europe's energy security. We are stronger in cooperation, and we have determined ways to develop the regional gas market," acting head of the GTSOU Pavel Stanchak said.