The actual cost of the shorthaul service for the natural gas transmission through interconnection entry and/or exit points will remain unchanged within the Q1 2025. It will allow to transport natural gas that has been already transported to Ukraine applying this shorthaul service and is currently stored in the underground gas storage facilities (UGS) of Ukraine in the “customs warehouse” mode under current conditions.
The corresponding decision, upon the proposal of Gas TSO of Ukraine, was approved by the National Commission for State Regulation of Energy and Utilities (NEURC). NEURC Resolution No. 1642 dated 29.09.2024 modifies the Methodology for determining and calculating Tariffs for Natural Gas Transmission services for Entry and Exit Points based on long-term incentives (hereinafter referred to as the Methodology), which was originally approved by the NEURC Resolution No. 2517 dated on September 30, 2015.
“The new methodology allows us to apply a reduction factor for the shorthaul service in order to ensure that the cost of transportation for customers remains unchanged during the Q1 2025 while tariffs will be reviewed for the new regulatory period. Here’s how it will work — if the current tariff at a certain point will be increased in the new regulatory period, then the discount level at this point for Q1 2025 will be reduced similarly, so the overall cost of the shorthaul service remains unchanged. This would allow the customer to plan their operations for the first quarter of the new regulatory period,” explained Vadym Rybachuk, Commercial Director of GTSOU.
The current tariffs for GTSOU services have been set for the regulatory period of 2020-2024. GTSOU is in consultations with NEURC regarding the establishment of new tariffs that will preserve the economic attractiveness of the GTS and incentivize customers to utilize its capacities.
The shorthaul service was introduced on January 1, 2020, offering a discount on transportation between designated interconnection points of entry and exit. In compliance with the Gas Transport System Code requirements, this service is defined as “capacity with restrictions”.