Today Ukraineis the largest natural gas transit country in the world. Ukrainian natural gas transportation system that links the regions of the world’s largest reserves of natural gas with European countries that have significant amounts of natural gas consumption, allows our country to be one of the key players in the natural gas business.
Ukrainetransports Russian natural gas to 18 European countries:Austria, Bulgaria, Bosnia, Greece, Italy, Macedonia, Moldova,Romania, Germany, Poland, Serbia, Slovakia, Slovenia, Hungary,France,Turkey,Croatiaand Czech Republic.
The transit of Russian natural gas through Ukraineis performed according to the long-term contract between the National Joint-Stock Company Naftogaz of Ukraine and OJSC Gazprom concerning the volume and terms of transit for the period 2009 – 2019 and addendum signed April 21, 2010.
The company provides reliable transit of natural gas at the technical level due to the implementation of a program of reconstruction and technical upgrading of natural gas pipelines and compressor stations, introduction of international standards of operation and use of energy saving technologies and equipment.
The reliability of natural gas transit and its supply to domestic consumers is ensured by reserves and intersystem natural gas pipelines, as well as developed system of underground storage facilities, the largest of which are located in the western region of the country.
The Ukrainian natural gas storage network has extensive capacity which may soon be deployed to increase the natural gas storage capacity of foreign companies.
Ukrainian natural gas transportation system is a link of natural gas supplies on the Eurasian continent288 bcm of input capacity178.5 bcm of output capacity142.1 bcm — including to the countries of Central and Western Europe andTurkey39 800 kmof pipelines13 900 km- diameter 1000-14005 000 km- diameter 700-80020 900 km- diameter 500 and less74 natural gas compressor stations112 compressor plants713 compressor units5450 MW capacity of compressor stations13 underground storage facilities32 bcm of total working capacity of natural gas storage facilities367 000 kmof natural gas distribution networks
Competitive advantages of Ukrainian natural gas transportation system:
the shortest way for Russian and Central Asian natural gas to reach European natural gas market;substantial potential to increase transit capacity with minimal investment.
Taking into account the existing technological capacity, Naftogaz of Ukraine without significant investment could increase the volume of transit of natural gas by 47 bcm a year. And with the construction of the Novopskov-Uzhgorod pipeline (total length about1500 km), and the addition of compressor stations on the Torzhok-Dolina pipeline, the increasing capacity of the GTS could be 53 bcm a year.
The Potential of Ukrainian Gas Transport System:Construction of compressor stations on Torzhok - Dolyna natural gas pipeline allows for transit capacity increase up to 24 bcm per yearConstruction of Novopskov– Uzhgorod natural gas pipeline with project capacity up to approximately 29 bcm per yearTotal expected increase in transit volumes - up to 195 bcm per year
Naftogaz of Ukraine constantly arranges events and conducts measures for modernization of Ukrainian natural gas pipeline network and underground natural gas storages. Compressor and natural gas metering stations, implementation of energy effective and energy saving technologies and equipment.
Today within the realization of Common declaration, signed on March 23, 2009, based on results of Common EU and Ukraine International Conference regarding modernization of natural gas transport system of Ukraine, the Company worked out separate technical and economical statements for the near-term projects of GTS reconstruction and modernization.
Within agreements with EU regarding realization of short-term projects of GTS modernization, Naftogaz of Ukraine initiated the project Reconstruction of linear structures of Urengoy – Pomary – Uzhgorod natural gas pipeline (the first strage) that will involve investments of international organizations.
During this event Naftogaz of Ukraine, EBRD and EIB signed Agreements regarding the financing of the project.
The project capacity of gas transport system of Ukraine towards Western Europe and Turkey is 142 bcm per year, while the real transit in 2010 was 95.4 bcm. The existing potential of transit growth is about 47 bcm per year.
Realization of the new natural gas pipeline Novopskov – Uzhgorod project on Ukrainian territory will allow to increase transit on additional 29 bcm per year.
If the planned compressor stations on the natural gas pipeline Torzhok – Dolyna are finished, the system capacity will increase on additional 24 bcm per year.
As a result the realization of these projects will allow increasing Ukrainian GTS capacity up to 200 bcm per year.
Also there is a possibility to increase the capacity of natural gas transportation system not only in Western but also in Southern direction. On condition of building the natural gas pipeline Talne – Ananiiv – Izmail and additional compressor stations, the company will be able to increase transit to Balkans and Turkey till 30 bcm per year.