Orders for gas transportation at the Polish border have exceeded the guaranteed capacity of Ukrainian GTS exit point

January 11, 2021, Kyiv – Traders’ orders on gas transportation volumes from Ukraine to the EU at the virtual Ukraine-Poland interconnection point are higher than the current capacity of the gas transportation system. The company was forced to limit traders’ orders to export gas in short-haul mode. This once again underlines that having virtual points at all the borders is in the interest of the entire Eastern European market and will be in demand.

Given the guaranteed exit point capacity of 12.9 million m3 per day, the orders on the guaranteed basis amounted to 11.1 million m3, whereas another 120 thousand m3 were additionally ordered on the auction platform on a daily basis.

At the same time, the orders for short-haul services these days have reached the volume of 3 million m3, due to increased demand for natural gas in Europe caused by the colder weather. GTSOU can provide a physical flow of 12.9 million m3. Therefore, the Company has proportionally limited short-haul volumes for customers using transportation services to about 1.7 million m3.

It should be also reminded that short-haul (or restricted capacity) according to the GTS Code is considered to be the most interruptible service, which can be provided only if GTSOU has the technical capacity. At the same time, the tariff for this service is the lowest – 2-3 times lower compared to ordering guaranteed capacity. The specific feature of the short-haul service involves the risk that customers may not receive it in full. In this case, the service is paid only for the actually transported volumes.