Gas TSO of Ukraine LLC has made the first capacity allocation under the auction bidding procedure

7th of July 2020, Kyiv – Gas TSO of Ukraine LLC held the first auctions in its history for allocation of available annual firm capacity for 2020-2021 gas year* in accordance with the common European ENTSO-G auction calendar. Particular interest was expressed in the capacity of the exit point for near-border customers of Moldova and the capacity for import from Slovakia at the Budince interconnection point. The auctions were attended by 5 network users. The total allocated capacity amounted to more than 7.8 million m3/day. The auction details you can find on the official website of Gas TSO of Ukraine LLC in the auction results section.

On 20 July 2020, auctions will be held for the allocation of annual interruptible capacity for the 2020-2021 gas year, at which available interruptible capacity will be offered, including import from Poland, Hungary and additional import from Slovakia at the Uzhgorod/Velke Kapusany interconnection point. Unfortunately, Slovak TSO has not yet informed the market what capacity amount is planned to be offered by the Slovak side at this interconnection point. This situation makes import capacity at this interconnection point less attractive for traders, because they cannot plan a stable mode of operation and, accordingly, buy less capacity from the Ukrainian side of the interconnection point. This underscores once again the importance of implementing European business rules in neighbouring EU countries at all interconnection points with Ukraine and synchronizing capacity allocation mechanisms with related TSOs.

Gas TSO of Ukraine LLC invites all interested companies to continue the registration on the RBP and GSA auction platforms and to participate in auctions for the annual capacity, which is the cheapest.

It will be recalled that starting from July of the current year, the capacity of the 2020-2021 gas year at all interconnection points is allocated in accordance with the auction bidding procedure, which increases the competition between network users in capacity allocation. Capacity for transit of Russian natural gas in the amount of 65 billion m3 for 2020 and 40 billion m3 for 2021-2024 was previously booked by Naftogaz of Ukraine NJSC. In case of transit need of additional amounts, additional capacity will be bought on the general basis.

*Gas year is starting from 1st of October.