The first month of the autonomous of the Gas TSO LLC: challenges and tasks

August, 15, 2019, Kyiv – During the first month of the operation of the Gas TSO LLC as an independent company, separated on July 1, 2019, people organization structure was formed, own business process were integrated, technical regulation was developed, and the work on the technical program for 2020 had started. Thus, the preparation for the legal separation of the Gas TSO LLC from January 1, 2020, is going under the Unbundling Roadmap terms in compliance with key requirements and deadlines.

The transportation of the natural gas through the trunk pipelines is going in a regular operation mode.

Technical maintenance of the GTS. In July 2019, Gas TSO LLC on behalf of the Ukrtransgaz JSC carried out gas transmission system maintenance. During the time, 1422 applications for the repair and maintenance of facilities were completed by own efforts, and 13 emergencies were eliminated promptly. The quality of work is fully compliant with the requirements necessary for the reliable and safe operation of the GTS.

People. 9.5 thousand Ukrtransgaz employees responsible for the technical operation of the GTS and undergoing maintenance have been transferred to the Gas TSO LLC. Gas TSO LLC uses a simplified and more efficient structure compared to Ukrtransgaz JSC. Commercial function, dispatching, procurement are still part of the Ukrtransgaz, as required by the current license and a valid transit contract with Gazprom PJSC until December 31, 2019.

Integration of technological and business processes. The preparation and implementation of more than one thousand internal regulations, which were developed in the previous stage of unbundling have been completed and implemented.

IT. Separate business scope in SAP ERP was created to support the activity of Gas TSO LLC. Separation of IT systems of GTS Operators and Ukrainian gas storage facilities is ongoing.

Certification. The project team responsible for the unbundling project in the Naftogaz Group has prepared a full set of documents for the certification by the NEURC (the Ukrainian Regulator) with further approval by the Energy Community Secretariat. The documents have been developed in cooperation with international consultations and experts, in full compliance with the requirements of Ukrainian legislation and EU energy directives.

Service level agreement (SLA) defines the interaction between the Operator serving the GTS facilities and Ukrtransgaz, on which balance the system assets are allocated. In July 2019, Ukrtransgaz also provided the Operator with fuel gas, all necessary materials, provided transportation services and more. By the end of the year, some of these functions will be transferred to the new company. In particular, it is planned that in September, the Operator will start purchasing fuel gas, spare parts,  which will allow the company to increase the level of operational independence.

At the same time, successful unbundling of the GTS Operator of Ukraine is impossible without the support of the Government. In particular, the adoption of the law on concession and securing stable financial conditions is essential for the future Operator’s work, including approval of economically reasonable tariffs and preventing unauthorized gas off-take from the GTS.