Ukrtransgaz to assess demand on gas transit from Romania via Trans-Balkan pipeline
Public joint-stock company Ukrtransgaz has launched the market demand assessment for entry capacities to Ukraine from Romania via Trans-Balkan pipeline, the company's press service has reported.
"Ukrtransgaz launches the non-binding assessment procedure to study the demand among the domestic and adjacent countries market players for firm capacities at the entry point of Isaccea-1-Orlivka (Transit-1 pipeline) in the direction of Romania-Ukraine. Based on the results of the market assessment Ukrtransgaz is going to take the decision on the future binding capacity allocation procedure (Open Season) for the firm capacities of IP Isaccea-1 – Orlivka," the company said.
Ukrtransgaz said that after the completion of TANAP and Turkish Stream pipelines construction and expected development of the offshore natural gas production in Romania, the possibility to transport natural gas along the Romania-Ukraine route will have strategic meaning, since it will create a South-North bi-directional corridor and provide security of supply for Balkan countries. Moreover, the existing infrastructure of the Trans-Balkan pipelines will ensure the most cost efficient solution for gas transportation in the region, the press service said.
Transit-1 pipeline is one of three main pipelines of Trans-Balkan route, which is currently used for the natural gas transportation to Bulgaria. The long-term booking contract of the pipeline expired in 2016 and it will be possible to operate the pipeline in compliance with EU regulations after expiration of the transit contract between Naftogaz Ukrainy and Gazprom in the end of 2019.
"When Transit-1 pipeline becomes bi-directional, it would open the possibility to transport up to 5 bcm annually for the needs of both huge Ukrainian natural gas market, and markets of the countries of Central and Eastern Europe via the gas transmission system of Ukraine," the company said.
Ukrtransgaz accepts applications in the period between March 30 and April 30, 2018. The company will publish the results of the assessment by June 1, 2018.
