Powernext and the Ukrainian gas network operator PJSC UKRTRANSGAZ announced that they have signed a Memorandum of Understanding in order to evaluate possibilities for a cooperation. Powernext would bring its European experience in offering market-based tools to infrastructure operators while PJSC UKRTRANSGAZ would bring its knowledge of the Ukrainian gas market.
Today, the national yearly gas consumption of Ukraine is the largest in Eastern Europe with a volume of about 33 bcm. Ukraine is currently liberalizing and modernizing its gas market, progressively making it compliant with the European Third Energy Package. In this context, market-based mechanisms are increasingly needed in Ukraine to support the new balancing regime and to further develop gas trading.
PJSC UKTRANSGAZ intends to increase transparency, competition and stability of gas trading in Ukraine in accordance with European goals.
PJSC UKRTRANSGAZ as the transmission system operator, is ready to become a proactive user of a trading platform for the purchase of fuel gas and gas for balancing purposes, as required by the European daily balancing regulation, which we are planning to implement in Ukraine in 2018″, said S. Makogon, Director of Strategy and Business Development of PJSC UKRTRANSGAZ.
Powernext operates the Pan-European gas platform PEGAS, which allows market participants to trade natural gas on 12 hubs in 9 countries. PEGAS is today the preferred exchange platform for natural gas trading in Europe. With the establishment of a cooperation with Central European Gas hub (CEGH) in 2016 and with the integration of the Czech gas hub on the PEGAS platform in December 2017, Powernext started gaining foothold in the Eastern European Area.
Powernext established itself as an important partner to TSOs to develop solutions to facilitate the market functioning such as for balancing purposes. In this regard, Powernext is looking forward to offering its support to the Ukrainian gas market to successfully realize this project,” stated Dr. Egbert Laege, President of Powernext.