Powernext SAS and PJSC UKRTRANSGAZ signed a memorandum of understanding to evaluate possible cooperation in Ukraine

Powernext SAS and PJSC UKRTRANSGAZ signed a memorandum of understanding to evaluate possible cooperation in Ukraine

Paris, 24 January 2018. On 18 December 2017, Powernext and the Ukrainian gas network operator PJSC UKRTRANSGAZ signed a Memorandum of Understanding in order to evaluate possibilities for a cooperation. Powernext would bring its European experience in offering market-based tools to infrastructure operators while PJSC UKRTRANSGAZ would bring its knowledge of the Ukrainian gas market.

Today, the national yearly gas consumption of Ukraine is the largest in Eastern Europe with a volume of about 33 bcm. Ukraine is currently liberalizing and modernizing its gas market, progressively making it compliant with the European Third Energy Package. In this context, market-based mechanisms are increasingly needed in Ukraine to support the new balancing regime and to further develop gas trading.

PJSC UKTRANSGAZ intends to increase transparency, competition and stability of gas trading in Ukraine in accordance with European goals.

“PJSC UKRTRANSGAZ as the transmission system operator, is ready to become a proactive user of a trading platform for the purchase of fuel gas and gas for balancing purposes, as required by the European daily balancing regulation, which we are planning to implement in Ukraine in 2018",  says S. Makogon, Director of Strategy and Business Development of PJSC UKRTRANSGAZ.

Powernext operates the Pan-European gas platform PEGAS, which allows market participants to trade natural gas on 12 hubs in 9 countries. PEGAS is today the preferred exchange platform for natural gas trading in Europe. With the establishment of a cooperation with Central European Gas hub (CEGH) in 2016 and with the integration of the Czech gas hub on the PEGAS platform in December 2017, Powernext started gaining foothold in the Eastern European Area.

“Powernext established itself as an important partner to TSOs to develop solutions to facilitate the market functioning such as for balancing purposes. In this regard, Powernext is looking forward to offering its support to the Ukrainian gas market to successfully realize this project,” states Dr. Egbert Laege, President of Powernext.

About Ukrtransgaz

PJSC UKRTRANSGAZ is the operator of the gas transmission system and the underground gas storage facilities system of Ukraine. UKRTRANSGAZ annually delivers up to 35 billion cubic meters (bcm) of natural gas to consumers in Ukraine and transports up to 110 bcm to European countries (with technical annual exit capacity of 146 bcm). Today, UKRTRANSGAZ operates 11 underground storage facilities with total active capacity of 30,6 billion cubic meters. Since 2013 UKRTRANSGAZ is the Observer of the European network of transmission system operators for gas (ENTSOG). http://utg.ua/en/

About Powernext

Established in 2001, Powernext is a regulated market under French legislation. Powernext is headquartered in Paris and active across Europe. As a market facilitator Powernext develops tailor-made solutions for energy markets. As part of EEX Group, a group of companies serving international commodity markets, Powernext operates the Pan-European gas platform PEGAS, as well as the registry for Guarantees of Origins, the registry for Energy Savings Certificates and the registry for Capacity Certificates for RTE. Other services include solutions for TSOs to balance natural gas. For more information: www.powernext.com