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Regulators Approved Project of New Capacities for Import of 3 bcm of Gas a Year from Poland to Ukraine

Regulators Approved Project of New Capacities for Import of 3 bcm of Gas a Year from Poland to Ukraine

03.05.2023 00:00

The National Energy and Utilities Regulatory Commission of Ukraine (the NEURC) and the Polish Energy Regulatory Office, agreed on a draft proposal offered by the operators of the Ukrainian and Polish GTS - GTSOU and GAZ-System - for the development of gas transportation capacities at the border between the two countries to increase the possibility of import gas from Poland to Ukraine by 3 bcm a year, starting from the 4th quarter of 2028.

This is stated in the releases on the websites of the NEURC and GTSOU dated April 28 and in the press release of GAZ-System, which was published on May 2.

The decision was made by both regulators on April 28.

According to the project proposal published by GTSOU, it is proposed to build and modernize gas transportation facilities on the Ukraine-Poland border in order to increase the possibility of import gas from Poland to Ukraine by about 3 bcm a year. The import of LNG is also noted.

On the Polish side, two gas pipelines with a length of 247 km should be built on the territory of Poland, as well as the gas measuring station in the village of Hermanovychy, on the border with Ukraine. The expected time of commissioning of these facilities is the second quarter of 2030, the cost of the works is estimated at EUR 359.2 million.

The Ukrainian side must carry out the reconstruction of the compressor station Komarno, located in the Lviv region, and put the modernized facility into operation in the fourth quarter of 2028, the cost of the work is EUR 82.3 million (excluding VAT).

The operators plan to hold an annual auction for the distribution of capacity of the new project on July 3 this year. If this auction and subsequent economic tests are successful (capacity is purchased by market participants), then in the third quarter of this year the parties will sign an agreement on the implementation of the project. The entire project is planned to be completed and the new facilities commissioned in the fourth quarter of 2028.

The terms may be revised against the background of the Russian-Ukrainian war.

"EnergoBusiness" reference, Poland has significantly developed its gas transport infrastructure in recent years.

In particular, in 2016, the LNG terminal in Świnoujście was put into commercial operation, today its regasification capacity is 6.2 bcm a year.

On May 5, 2022, the GIPL gas pipeline was put into operation, which can transport gas from Lithuania to Poland, in particular from the LNG terminal in Klaipeda, its capacity is 2 bcm.

On August 26, the Poland-Slovakia interconnector became operational, the capacity for gas transportation to Slovakia is 4.7 bcm a year, and to Poland - 5.7 bcm a year.

From October 1, 2022, the Baltic Pipe gas pipeline, which transports gas from Norway through Denmark to Poland, was put into operation. Its annual capacity is 10 bcm.

In 2026, Poland plans to put into operation a second LNG terminal - in the city of Gdansk with a design capacity of regasification of 6.1 bcm a year.