GTSOU’s new strategy will help save around UAH 20 billion — Dmytro Lyppa

Pursuant to the principles of operational transparency, Gas TSO of Ukraine (GTSOU) held a round table for international stakeholders, particularly including representatives of the European Commission, the Energy Community Secretariat, the EU Delegation to Ukraine, the Embassies of the United States, the United Kingdom and Germany in Ukraine, the International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development (EBRD), the US Department of Energy (DOE), and USAID ESP.

GTSOU’s General Director Dmytro Lyppa presented the Company’s Strategic Development Plan and goals for 2024-2029, as well as the Company’s financial bottom line from the current regulatory period, to its international partners. The update of the GTSOU’s strategy, particularly with regard to rightsizing the gas transportation system and identifying alternative routes of gas supply, is provided for by the requirements enshrined in paragraph 69 of the Memorandum of economic and financial policies concluded with the International Monetary Fund.

“Ukraine’s energy security depends on the stability of the GTSOU’s operational and financial condition. Therefore, we are already working with the changes in the Ukrainian and European gas markets, developing new transportation routes and looking for new customers. The Company’s strategy will allow to save up to UAH 20 billion until 2029. The Company is already showing positive changes: in 2023, we made it to the top five most profitable companies of Ukraine, as well as paid record dividends to the state this year,” Dmytro Lyppa noted.

“We thank our foreign partners for supporting our country’s energy complex in the difficult times of the Russian invasion, as well as for paying attention to the work of the independent GTS operator of Ukraine. Today’s event is another proof of the Ukrainian side’s compliance with its obligations, in particular with regard to the GTSOU’s implementation of the Memorandum’s respective clause. We are also grateful for the positive independent assessment of the Company’s new strategy. We count on further support from our foreign partners and hope for their fruitful and long-term cooperation with the Operator in these difficult times for Ukraine,” Ukraine’s Deputy Minister of Energy Svitlana Grynchuk said.

GTSOU cooperates with fellow European GTS operators on the creation of additional capacities for gas transportation from Southern to Central Europe (Trans-Balkan Corridor), as well as from Poland to Ukraine. These capacities will open access to new sources of gas for Ukrainian consumers, as well as increase the flexibility and reliability of gas supply in Europe.

New directions of gas transportation, together with the development of gas storage services for international suppliers, can bring GTSOU over UAH 14 billion in additional revenue between 2024 and 2029.

Another area that is strategic for GTSOU is the development of the renewable gas market. The Company participates in the Central European Hydrogen Corridor (CEHC) project that is supposed to create a hydrogen route from Ukraine to European consumers. As of now, CEHC has been included on the European Commission’s list of projects of common and mutual interest.

Apart from the above, breaking the legislative impasse with regard to biomethane exports is an incentive for the development of the said market. GTSOU cooperates with all interested parties on the development of the biomethane market, having so far provided technical conditions for the connection of five facilities.