Unbundling is completed: an independent GTS operator began to work

Gas TSO of Ukraine LLC (OGTSU) has accepted assets of the Ukrainian GTS onto the balance sheet. It was the last step of the logical completion in the process of separation of the OGTSU from its parent companies – Ukrtransgaz JSC and Naftogaz of Ukraine NJSC (unbundling).

On January 01, 2020, Kyiv – Today, GTS Ukraine Operator LLC has signed with Ukrtransgaz JSC, an act of acceptance and transfer of Ukrainian GTS assets under the commercial lease agreement.

The document contains over 47 thousand inventory units and amounts to over UAH 32 billion of carrying amount. The act was agreed by all parties involved – Naftogaz of Ukraine, State Property Fund, Ministry of Economy, Ministry of Finance, Ministry of Energy.

OGTSU has acquired state-owned property that is used in the process of natural gas transportation by main pipelines. Today, by a separate act, OGTSU LLC was transferred from Ukrtransgaz JSC (Naftogaz Group) to the ownership and management of the state company MGU PJSC, 100% of which is held by the Ministry of Finance of Ukraine. The relevant changes have been made to the National State Registry of Ukrainian Enterprises and Organizations.

Thus, the project of separation of natural gas transportation activities (GTS operator) from Naftogaz of Ukraine was fully completed according to the schedule. The independent GTS operator of Ukraine has successfully started operations – providing GTS operation, transporting gas to consumers of Ukraine and the EU, including fulfilling Gazprom’s orders under the new transit contract.

For reference

The transfer of assets from Ukrtransgaz JSC to LLC Gas TSO of Ukraine LLC was provided by the Cabinet of Ministers of Ukraine Decree No. 840 of September 18, 2019 “On Separation of Natural Gas Transportation and Provision of Gas Transmission System Operator”. The decree defined the model of separation and approved a plan of measures to meet the requirements for separation and independence of the GTS operator. And the procedure for transferring the management of the objects was determined by the Cabinet of Ministers of Ukraine Decree No. 942 of November 15, 2019 “Some issues of state-owned property management used for natural gas transportation through gas pipelines.”