11:15 15.01.2020

Govt not planning to create secured gas reserve for 2020

2 min read
Govt not planning to create secured gas reserve for 2020

The Cabinet of Ministers of Ukraine is not planning to create the secured gas reserve for 2020.

According to the draft resolution posted on the website of the Ministry of Energy and Environment Protection (approving the amount of natural gas secure reserves for 2020), the government plans to approve the amount of gas reserves that gas suppliers must create, depending on the planned monthly supply volumes to consumers, at zero percentage.

"To establish that in 2020, natural gas suppliers create a secure reserve of natural gas in the amount of zero percentage of the planned monthly supply by a supplier of natural gas to consumers for the next month," the government said in the draft resolution.

As Head of Gas Transmission System Operator of Ukraine LLC (GTSOU, the new operator of the Ukrainian GTS since January 1, 2020) Serhiy Makogon said, commenting on this draft, creating a secure gas reserve for 2020 in the middle of January no longer makes sense. At the same time, he focused on the need to form secure reserves for subsequent periods, in particular, for the winter of 2020/2021.

"Obviously, there is no sense in creating a secure reserve for 2020 in the middle of January, but we need to think about the next winter. Who will create gas reserves for the 2020/21 winter? Will the government oblige Naftogaz again? Will Naftogaz have allocated funds to create such a reserve? And it can be hundreds of millions of dollars. I personally believe that all market players should be jointly and severally liable for creating such a gas reserve," Makogon wrote on his Facebook page.

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