French-based Engie (formerly GDF Suez SA) from January 1, started natural gas imports to Ukraine, supplying 3.9 million cubic meters to the Ukrainian gas transportation system (GTS) in the first days of the month, the public relations department of PJSC Ukrtransgaz has said.
“According to the report of Engie, the daily volume of gas supplies is nearly 400,000 cubic meters,” reads a press release of the Ukrainian GTS operator.
Ukrtransgaz said these gas volumes were imported from Poland via the Germanovichi gas metering station.
The company noted in the middle of December 2016 Engie successfully conducted tests of natural gas supplies.
At the end of October 2016 Ukrtransgaz and Engie signed agreements on cooperation in transportation and storage of natural gas in Ukrainian underground gas storage facilities (UGS), whereby Engie gained the possibility to store gas in Ukrainian UGS.
Ukrtransgaz’s parent company, Naftogaz Ukrainy, said signing such framework agreements would enable Engie to independently supply gas to Ukraine with the possibility of further direct sales to Ukrainian traders and consumers, for which Engie had set up a subsidiary, Engie Management Ukraine LLC.
The subsidiary’s core business will be imports, transportation, storage and sale of gas in the interests of major industrial consumers.
“The potential second step is trade on the electricity market,” it said.
Engie supplied about 3.5 billion cubic meters of gas to Ukraine in 2015, which was delivered primarily to Naftogaz.
Ukrtransgaz, a 100% subsidiary of Naftogaz Ukrainy, operates Ukraine’s trunk gas pipeline system, as well as its 12 underground gas storage facilities with combined capacity for 31 billion cubic meters. (Interfax/Business World Magazine)