Polish and Ukrainian natural gas transmission system operators set the rules of cooperation on the Gas Interconnection Poland-Ukraine project.
The agreement signed between Gaz-System of Poland and Ukrtransgaz of Ukraine covers the cooperation of both operators in the area of the engineering and construction works.
According to a statement by Gaz-System, the planned project includes the construction of a new gas pipeline between Hermanowice gas node on the Polish side and Bliche Volytsia on the Ukrainian side, integrating transmission systems of both countries.
The integration of Polish and Ukrainian transmission systems is a part of the North – South gas corridor allowing for the transmission of gas from the LNG terminal in Świnoujście through the countries of the central and eastern Europe via cross-border interconnections.
The main objective is to establish a flexible transmission infrastructure within the CEE, which will allow for connecting western gas markets and global LNG market with the market of the CEE, which is expected to boost the competition and attractiveness of the region in the perspective of market participants.
The project is expected to increase the transmission capacity to a maximum of 5 bcm per year in 2020, when also the expansion of the national transmission system in Poland will be completed, Gaz-System said in its statement.
The project would also enable the transmission of gas from the planned Northern Gate project through the national gas transmission system towards the Eastern Europe.
With the project completed Ukraine would diversify its sources of supply which will include liquefied natural gas, and it will increase the level of integration of regional gas markets while establishing a transmission corridor that will boost energy solidarity among countries of the European Union and the energy community.
The agreement regulates the cooperation of both operators during the engineering phase and, depending on the investment decision, during the future implementation phase. In addition, the operators have agreed to conduct the open season procedure, based on which, the final investment decision will be taken.