Italy's Snam signed a Memorandum of Understanding with Slovakia's Eustream and Ukraine’s Naftogaz and Ukrtransgaz to cooperate in operations and enhancement of the gas network in Ukraine, Snam announced on Monday.
EC Commissioner for Climate Action & Energy, M.A. Canete, Italy's Minister of Economic Development Carlo Calenda, and Ukraine's Minister of Energy Ihor Nasalyk signed the MoU, according to the press release.
According to Snam, the MoU aims at maintaining the quality of natural gas transmission in Ukraine in line with European market standards. The agreement also ensures that the Ukrainian gas transmission system (GTS) is operated in a safe and efficient manner and is accessible on a transparent and non-discriminatory third party access basis, in compliance with the applicable legislation.
Ukraine is implementing the unbundling of the gas transmission system operator (TSO) from the incumbent Naftogaz and has expressed its interest in cooperating with an experienced Western transmission system operator(s) in the operation of the national transmission system, in accordance with Ukrainian law governing the natural gas market.
"This will help foster the liquidity and security of supply for both the EU and Ukraine's gas markets, fully in line with the EU Commission Energy Security Strategy," the press release read.
Snam operates and develops Europe's largest, most accessible pipeline network, which extends for more than 40,000 km. It also runs the largest storage infrastructure in Europe with 19 billion cubic meters (bcm) in capacity and manages one of the first LNG terminals built in Europe.
Eustream is the owner and operator of one of the largest gas transmission systems in the European Union. Eustream's mission is to transport natural gas in Slovakia and through Slovakia to European markets. Eustream is a long-term partner to the Ukrainian gas transmission system by being directly interconnected with Ukraine in both natural gas flow directions.
Ukrtransgaz is the operator of one of the most powerful gas transmission and storage systems in the world. GTS entry capacity is above 302 bcm/year, exit capacity in the European direction is over 151 bcm/year and storage capacity is 31 bcm. Ukraine's GTS links the systems of neighboring Russia, Belarus, Poland, Slovakia, Hungary, Romania and Moldova.
Naftogaz of Ukraine is the national vertically integrated company engaged in full cycle of operations in oil and gas exploration and production, transport and storage, supply of natural gas and LPG to consumers.
By Muhsin Baris Tiryakioglu