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User:IvannaBedej/Ukrtransgaz

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IvannaBedej/Ukrtransgaz
IndustryNatural gas storage
Founded1998
FounderNJSC «Naftogaz of Ukraine»
HeadquartersUkraine Kyiv
Key people
Serhiy Pereloma, Acting General Director
Number of employees
5.5 thousand (as of 01.10.2020)
ParentNJSC «Naftogaz of Ukraine»
Websitehttp://www.utg.ua/

Joint-Stock Company “Ukrtransgaz” – independent Storage System Operator of Ukraine, which ensures operation of the Ukrainian underground gas storage facilities, as well as conducts works on retrofit and construction of main gas pipelines and facilities therein. JSC “Ukrtransgaz” is a part of the Naftogaz Group.

head office on Klovsky Spusk in Kyiv

History

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JSC “Ukrtransgaz”, a subsidiary company of NJSC “Naftogaz of Ukraine”, was established pursuant to Resolution of the Cabinet of Ministers of Ukraine dated July 24, 1998 No. 1173 “On delimitation of natural gas production, transportation, storage and sale functions”.

Until January 1, 2020, Ukrtransgaz operated in three main areas:

  • transportation of natural gas by main gas pipelines on the territory of Ukraine and its transit from Russia to European countries;
  • natural gas storage;
  • maintenance and retrofit of gas transportation facilities.

However, after unbundling (one of the largest reforms in the gas industry of Ukraine to separate gas transportation activities) had been completed, this function passed to the Storage System Operator of Ukraine. At the same time, Ukrtransgaz started working as an independent Storage System Operator of Ukraine.

Network of underground gas storage facilities in Ukraine

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Storage System Operator of Ukraine manages 12 underground gas storages* with a total capacity of 30.95 bcm. It is the largest network of underground gas storage facilities in Europe and the 3rd largest in the world.

Most Ukrainian UGS facilities are created at the depleted gas fields. Two of them – Chervonopartyzanske and Olyshivske – were launched on a basis of the aquifer structures.

Olyshivske UGS is also the 1st underground storage facility opened in Ukraine. It was founded in 1964.

Bilche-Volytsko-Uherske UGS is the largest gas storage facility in Ukraine and Europe. It can hold up to 17 bcm of natural gas.

80% of the Storage System Operator’s capacities are concentrated near the western border of Ukraine.

* Verhunske gas storage facility, located in Luhansk region, is currently situated in the temporarily occupied territory and not involved in the company activities.

Key performance indicators of the Storage System Operator of Ukraine

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30.95 bcm – total UGS capacity on the mainland of Ukraine.

21% – share of the UGS of Ukraine in the total capacity of gas storage facilities in Europe.

28.3 bcm – level of filling of UGS at the end of the 2020 injection season – the highest in 10 years.

10 bcm – gas reserves created by foreign companies in 2020 (four times higher year over year).

18.8 bcm – average filling level of UGS of Ukraine at the beginning of the withdrawal season in 2012-2021

Service customers of the Storage System Operator of Ukraine

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UGS close proximity to Europe, convenience of logistics operations, gas market reform and active development of business processes of Storage System Operator of Ukraine have made underground gas storage in Ukraine beneficial for both foreign traders and Ukrainian companies working with cross-border transportation and gas storage.

In 2016, a company from France was the first foreign customer of Ukrainian UGS. However, rapid growth in a number of customers of the Storage System Operator began after unbundling had been completed.

As of November 2021, a portfolio of customers of underground gas storage services in Ukraine is approaching 1,000, a number of non-resident customers exceeds 100, and their geography covers 27 countries and 3 continents: Europe, Asia and North America.

Services of the Storage System Operator of Ukraine

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Basic services:

  • Storage (injection, withdrawal)

Basic service of gas storage (injection, withdrawal) is rendered to customers of the Storage System Operator in the format of 3 packages.

  1. Yearly capacity – a package service rendered for a period of 1 year of storage, provides the customer with access to injection capacity (during the base injection season) and withdrawal capacity (during the base withdrawal season) on a guaranteed basis, the most favorable tariffs and use of gas storage operating capacity throughout the whole booking period.
  2. Monthly individual services provide access for the customers of the Storage System Operator to the individual operating capacity on a guaranteed basis and injection/withdrawal capacities on an intermittent basis during one gas month (regardless of the base season).
  3. Day-ahead individual services are available for customers, which have previously been allocated yearly capacity services or monthly individual operating capacity. In this cooperation format, the Operator's customers gain individual injection and withdrawal capacities on an intermittent basis.
  • Natural gas transmission management

A free service of the Storage System Operator, which provides access for the customer companies to the virtual point of gas transmission to the UGS, includes confirmation of trade notifications and accounting of transmission of natural gas stored in gas storage facilities.

The service covers, inter alia, gas stored in the Customs Warehouse mode, and allows issuing trade notifications for both resident and non-resident companies.

  • Customs Warehouse

Ukrainian and foreign owners of gas have an opportunity to store it in Ukrainian UGS facilities without paying taxes and customs duties for 1,095 days with further sale on the territory of Ukraine or re-export to EU countries.

At the beginning of the 2020/2021 heating season, companies stored 11.2 bcm of gas at the Customs Warehouse. This reaches 40% of the total gas reserves stored in Ukrainian UGS.

  • Customs Warehouse and short-haul

Short-haul – a service introduced by the TSO, which from January 1, 2020 opened to the customers of the Storage System Operator access to underground storage facilities at reduced tariffs for transportation between certain entry or exit points on interstate connections.

The service is available in combination with gas storage in the Customs Warehouse mode and defined as a capacity with restrictions.

Short-haul tariffs are on average 4 times cheaper vs standard ones when booking day-ahead capacities.

Additional Services:

  • Pledged gas monitoring

A service that allows owners of gas stored in UGS to use it as a bank pledge when obtaining loans, and representatives of the lending bank to track all transactions with the pledged gas. The functionality is available for banking institutions online and on the Operator's I-platform 24/7.

  • Exchange trading in gas in UGS

A service that provides the Operator's customers with an access to exchange standardized products for trade in natural gas stored in underground gas storage facilities of Ukraine. Gas trading through the electronic platform of the Ukrainian Energy Exchange is available to resident and non-resident companies.

Retrofit of the network of underground gas storage facilities in Ukraine

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In April 2021, the National Energy and Utilities Regulatory Commission (NEURC) approved a plan for development of gas storage facilities in Ukraine for 2021-2030. According thereto it is planned in 2021-2030 to invest UAH 13.69 billion in retrofit and development of underground gas storage facilities.

In 2021, reconstruction of compressor shop No. 4 of the Bilche-Volytsia booster compressor station of the Bilche-Volytsko-Uherske UGS has already begun. The project worth UAH 890 million is one of the largest in an investment portfolio of the Storage System Operator of Ukraine. Works will last until the end of 2024 and include replacement of engines, air cleaning device, power electrical equipment, emergency control, fire extinguishing, gas detection and alarm systems, and a redundant gas turbine power plant.

In the same year, the Operator completed reconstruction of the gas-collecting station at Bohorodchany UGS (I stage of construction), which started in 2017. Implementation of the project worth UAH 283 million (net of VAT) will allow the gas storage to operate at maximum design rates and at the same time reduce a negative impact on environment, automate the regulation of gas injection and withdrawal, improve its quality parameters.

In addition, the Storage System Operator has launched a large-scale project to build gas-metering points at 9 UGS facilities. Total budget of works, which will last until 2025, reaches UAH 1.4 billion (net of VAT). As of September 2021, design works have begun at 3 gas storage facilities: Dashavske, Bilche-Volytsko-Uherske and Proletarske.

At the same time, the second largest underground gas storage facility in Ukraine, Bohorodchanske, is preparing to upgrade the booster compressor station. The project worth over UAH 994 million is part of the ten-year Gas Storage Development Plan and envisages construction of a new compressor shop. This construction is the first for JSC “Ukrtransgaz” in 13 years: last time a new compressor shop was put into operation in 2008 at the Mrynske Production Unit for Underground Gas Storage.  

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[[Category:Naftogaz]] [[Category:Companies established in 1998]]