The exchange of information on trade notifications is carried out in accordance with the agreement on interaction between the gas transmission system operator and the commodity exchange operator. The form of the generalized trade notification and the instruction on the method of its transfer are defined by Section 4 of the Agreement on Interaction between the Gas Transmission System Operator and the Trading Platform Operator.
Pursuant to Subsection 3 of Section XIV of the GTS Code, the TSO performs balancing actions by purchasing and selling short-term standardized products and/or using balancing services.
In this case, the TSO as a counterparty conducts operations on trading platforms.
In accordance with Articles 6 and 9 of Commission Regulation (EC) №312/2014 of 26 March 2014 on the establishment of a network code for balancing gas transmission systems, LLC “Gas TSO of Ukraine” (hereinafter – the Company) should give priority to using short-term standardized products on trading platforms and only in case of insufficient liquidity can apply balancing agreements as a temporary measure.
On 23 January 2021, the Law of Ukraine “On Amendments to Article 3 of the Law of Ukraine“ On Public Procurement ”Concerning the Procurement of Natural Gas” № 1021-IX of 2 December 2020 entered into force. The provisions of this law allow the Company to purchase natural gas on commodity exchanges without applying the procedures specified by the Law of Ukraine “On Public Procurement” (hereinafter – the Law). Pursuant to point 13 of part 6 of Article 3 of the Law, this Law is not applied if network users purchase natural gas purchased by the gas transmission system operator to ensure own economic activities (including for own production and technical needs, cost recovery and production technological expenses, balancing actions) in accordance with the Law of Ukraine “On the Natural Gas Market”, the Gas Transmission System Code, provided that such purchases are made on commodity exchanges, the activities of which are regulated by law, which determines the legal conditions of creation and operation (commodity exchanges), and which meet the requirements of the Gas Transmission System Code.
Taking into account the legislative innovations, the Company plans to start purchasing natural gas to meet the production and technological needs of the Company and purchasing/selling natural gas for balancing actions on commodity exchanges that meet the requirements of the Law of Ukraine “On Public Procurement”.
The purchase/sale of natural gas by the Company on commodity exchanges will increase the liquidity of the natural gas market, in particular the development of the short-term products market. Trading in short-term standardized products on commodity exchanges will allow the Company to implement the possibility of determining the marginal sale price and marginal purchase price based on information on transactions on the trading platform, in accordance with point 9 of Subsection 6 of Section XIV of the Gas Transmission System Code.
In view of the above, the Company has started the procedure for purchasing of services for the organization of exchange trade in natural gas.
The Company invites trading platforms operators (exchanges) to join the procurement and, if interested, submit a commercial offer by 2 June 2021 to the Company’s address (03065, Kyiv, 44 Lubomyra Husara Avenue).
Terms of conducting the procurement of services for the organization of exchange trade in natural gas, requirements (criteria) and a list of documents provided by the participant to confirm compliance with the requirements (criteria) – UA.pdf