16:00 23.12.2021

Ukraine, Hungary sign agreement on gas transportation from Jan 1, 2022 – Makogon

2 min read
Ukraine, Hungary sign agreement on gas transportation from Jan 1, 2022 – Makogon

The Ukrainian gas transmission system operator and the Hungarian gas transmission system operator FGSZ have signed an agreement on cooperation on the introduction of guaranteed capacities for the transportation of natural gas from Hungary to Ukraine from January 1, 2022, said Serhiy Makogon, Head of the Ukrainian Gas Transmission System Operator (GTSOU).

"For me personally, the most important thing in this agreement is the creation for domestic traders of access to gas from the LNG terminal on the island of Krk (Croatia) and, accordingly, the diversification of gas supply sources to Ukraine. This is a step to enhance our security and new opportunities for traders from Ukraine and Europe!" wrote Makogon on his Facebook page.

He noted that after the unbundling in 2020, the Ukrainian GTSOU Operator conducted negotiations and approvals with international partners, which are currently ongoing.

According to Makogon, this agreement will physically transport up to 8 million cubic meters of gas from Hungary to Ukraine. In particular, as the daily volume of gas consumption in Kyiv, which is the largest consumer of gas. "Together with the available daily capacities from Slovakia (27 million cubic meters), the total guaranteed capacity for gas imports to Ukraine will increase to 35 million cubic meters per day," the head of the board wrote.

According to him, this deal is concluded for a test three months. During this time, Ukraine and Hungary plan to coordinate and set up all technical and operational processes to continue its operation from April 2022 and to further increase the guaranteed capacity.

"Starting from December 31, it will be possible to book capacities for gas imports from Hungary through the RBP platform at daily auctions. The first lunar auction will take place on January 17," Makogon said.

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