The best tactic for Ukraine and Poland to fight against Nord Stream 2 is in combining gas market potentials

March 26 – After a long hiatus, the Ukrainian-Polish working group on energy issues resumed its work. The meeting of the Parties was held on Friday, March 26, with the participation of representatives of the Ministry of Energy of Ukraine, Deputy Minister of Climate and Environment of the Republic of Poland Adam Guibourgé-Czetwertyński, Directors of Gas TSO of Ukraine, as well as representatives of Polish Institutions and Organization.

Poland is a strategic partner of Ukraine in the field of natural gas transportation. According to the results of 2020, GTSOU ensured the transit of natural gas to Poland at the level of 3.9 billion cubic meters of natural gas, while import of gas to Ukraine amounted to 1.5 billion cubic meters (+ 33% compared to the same period last year), of which 1 billion cubic meters of gas imports account for the virtual reverse. During 2020, some 1.024 billion cubic meters of imported volumes were directed from the Polish side to underground storage facilities for storage in the “customs warehouse” mode, of which 0.5 billion cubic meters were delivered in the short-haul “customs warehouse” mode.

According to the  representatives of GTSOU, in order to deepen mutually beneficial cooperation between Polish and Ukrainian gas markets, the participants of the meeting discussed the following prerequisites: creation of the firm capacities in the direction from Poland to Ukraine; simplification of licensing requirements of Poland for Ukrainian traders; introduction of a special regime (favorable tariffs and simplified requirements for Ukrainian traders) for facilitated gas transit from LNG-terminal to Ukrainian-Polish border; introduction of discount for the gas transportation for its further storage in Ukrainian UGSF; capacity allocation through joint auctions of Polish and Ukrainian Operators.

Access to new sources of natural gas supply, in particular via the LNG terminal in Świnoujście, creates significant potential for the integration of Ukrainian and Polish natural gas markets.

However, apart from common developments to improve business conditions, Poland and Ukraine also face common external challenges – the Russian pipeline “Nord Stream-2”.

“The common position of Ukraine and Poland in opposing this project is critical. But the best way for Ukraine and Poland of fighting against Nord Stream 2 is to develop our cooperation and combine the potentials of Ukrainian and Polish gas markets,” said Olga Bielkova, Director on Government and International Affairs of Gas TSO of Ukraine.

Taking into account rapid development of renewable energy and implementation of the Green Deal, aimed at the transition to a carbon-free economy of the continent by 2050, Ukrainian and Polish sides also see the potential in deepening the cooperation in the field of transportation of renewable gases (hydrogen, biomethane and synthetic methane).

“Gas TSO of Ukraine shares the European vector for sustainable development and decarbonization. This is reflected in the Company’s strategy. Moreover, considering the fact that the European Commission has officially recognized Ukraine as one of the main potential sites for the production and export of renewable hydrogen to Europe, we need to analyze all opportunities, so we can offer the appropriate services. Further integration into the European energy markets is a tool not only for strengthening the energy security of our country, but also for the development of its economy,” said Paweł Stańczak, Deputy General Director for Development and Transformation, of GTSOU.

Consolidated actions of both Parties can minimize the risks encountered by our countries and contribute to the energy security and economic development of the states.

Gas TSO of Ukraine expresses its gratitude to the Diplomatic Corps and the Ministry of Energy of Ukraine for the resumption of work of the Ukrainian-Polish group on energy issues.