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GTS operators of Ukraine, Poland sign memo on strengthening integration of gas markets

KYIV. March 17 (Interfax-Ukraine) – The GTS Operator of Ukraine and the Polish Gaz-System signed a memorandum of cooperation to improve interaction between the Ukrainian and Polish gas markets, the GTSOU press service reported on Thursday.

The parties intend to increase long-term guaranteed capacity on interstate connections, as well as remove barriers to cross-border gas trade (in particular, renewable gases), which will require adjustment of gas quality parameters between countries.

“Considering the REPowerEU plan, the Parties to the Memorandum will create a research platform for the transportation of renewable gases, such as biomethane and hydrogen. A scientific and technical study shall be conducted on the routes and opportunities of Ukrainian and Polish GTSs to transport renewable gases to Europe and specifically for use in Poland, and pilot projects for biomethane and hydrogen production and transportation shall be identified and implemented. The Ukrainian GTS shall also be connected to the EU hydrogen transport corridor,” the GTSOU said.

The operators will also analyze the prospects for transporting LNG between Poland and Ukraine, with the possible use of Ukrainian storage facilities to enhance regional security, and will promote available routes and sources of supply towards Ukraine to increase the use of existing gas infrastructure, such as Baltic Pipe, interconnectors with Lithuania and Slovakia.

The GTSOU and Gaz-System also agreed to hold regular customer service meetings to receive feedback on cross-border developments. This will allow operators to evaluate the market interest in new capacities between the two countries, gas transportation and the use of UGS facilities.

In addition, the Ukrainian and Polish operators agreed to work together on negotiating with the European Commission regarding funding for joint projects.

“The combination of Ukrainian and Polish potential in the gas sector will strengthen Europe’s energy security. We are stronger in cooperation, and we have defined ways of developing the regional gas market,” said Pawel Stanczak, Acting General Director of Gas TSO of Ukraine.