Gas TSO of Ukraine (GTSOU) and GAZ-SYSTEM S.A. are strengthening cooperation. The parties are pleased to announce the execution of the Memorandum of Cooperation to improve interconnectivity between the Ukrainian and Polish gas markets. It represents a significant milestone for both parties, who have worked together for several years. The Memorandum is the culmination of GAZ-SYSTEM’S efforts to support GTSOU during a challenging war.

“Signing of the Memorandum of Cooperation will facilitate formal integration of gas markets of Poland and Ukraine. It will define areas of collaboration between the two companies satisfying their respective needs and provide a roadmap for further efforts in both natural and renewable gas sectors. Last year GAZ-SYSTEM launched new interconnectors such as Baltic Pipe or pipelines connecting Poland with Lithuania and Slovakia which created new gas supply routes to Ukraine. We also see opportunities to support the Ukrainian gas market via the LNG Terminal in Świnoujście and the planned FSRU in Gdansk”, said Marcin Chludziński, President of GAZ-SYSTEM.

The Parties have agreed to cooperate to achieve the following objectives:

• To establish long-term firm capacities between Poland and Ukraine through an incremental capacity process or by additional solutions that would allow for firm flows toward Ukraine;
• To remove any possible barriers to cross-border gas trade (including ensuring the transportation of green gases), which would require the adjustment of gas quality parameters to allow for the transport of renewable gases between the two countries;
• To analyze the prospects for LNG transportation between Poland and Ukraine, with possible utilization of Ukrainian storage facilities to enhance regional gas security.

The companies will also promote available routes and sources of supply towards Ukraine to enhance the utilization of the existing gas infrastructure, i.e., Baltic Pipe, gas interconnector with Lithuania, and gas interconnector with Slovakia.

Among other things, TSOs of Ukraine and Poland have concerted on establishing regular shipper meetings to receive feedback from market participants on cross-border developments. It shall allow the TSOs to gauge market interest in new capacities between the two countries, transportation of natural gas, and utilization of storage facilities.

Considering the REPowerEU plan, the Parties to the Memorandum will create a research platform for the transportation of renewable gases, such as biomethane and hydrogen. A scientific and technical study shall be conducted on the routes and opportunities of Ukrainian and Polish GTSs to transport renewable gases to Europe and specifically for use in Poland, and pilot projects for biomethane and hydrogen production and transportation shall be identified and implemented. The Ukrainian GTS shall also be connected to the EU hydrogen transport corridor.

The TSOs of Ukraine and Poland agreed to work together to research and negotiate with the European Commission ways to fund joint projects aimed at strengthening interconnectivity between the Polish and Ukrainian gas markets.

“Poland is one of the major partners of the GTSOU with a wide range of prospects for cooperation. The combination of Ukrainian and Polish potential in the gas sector will strengthen Europe’s energy security. We are stronger in cooperation, and we have defined ways of developing the regional gas market,” said Pawel Stanczak, Acting General Director of Gas TSO of Ukraine.