For the first time, the Gas TSO of Ukraine has allocated capacity with an auction premium

January 12, 2021, Kiev – due to a significant demand for capacity on exit from Ukraine to Poland, yesterday the auction for the allocation of daily capacity ended with an auction premium of more than 4%. Bidding took place on the GSA auction platform, all available capacity was allocated.

“According to the GTS Code and European rules, access to capacity at cross-border points is provided in accordance with the results of auctions, which is the most transparent and competitive way of capacity allocation. For the first time, due to the excess of demand for the available capacity of the gas pipeline connection, the auction took place in a competitive environment between the Network Users. According to the results of the auction, the Gas TSO of Ukraine received an auction premium for the first time. These additional funds will be directed to the development of Ukrainian gas transportation system in accordance with the law”, – commented Ievgen Todorov, Commercial Director of Gas Transmission System Operator of Ukraine.

We also draw your attention to the fact that since the available guaranteed capacity for the day ahead on January 12, 2021 was fully allocated, the auction for the allocation of guaranteed capacity within-day in the direction from Ukraine to Poland on January 12, 2021 will not be held. GTSOU offers network users to participate in auctions for a monthly period or longer in order to get a service at a more attractive price.

It will be recalled that in January 2021, due to the increased demand for gas transportation services from Ukraine to the EU, the order from traders at the Ukraine-Poland virtual connection point exceeded the technical capability of the gas transportation system at this point. Therefore, the GTS Operator of Ukraine was unable to meet all traders’ requirements for gas export in the short-haul mode, which is the most interruptible service with the lowest cost and is provided only if the GTS Operator has the technical ability.