Ukrtransgaz transferred the function of technical operation of Ukraine's GTS to subsidiary

JSC Ukrtransgaz transferred the function of technical operation of the gas transmission system of Ukraine to GTS Operator of Ukraine LLC, the founder of which is 100% JSC Ukrtransgaz. This is a consistent step in the project to prepare for the legal and operational separation of the function of transporting gas from the production and sale of gas – unbundling. The press service of Naftogaz reports it.

The GTS Operator of Ukraine will operate as a separate legal structure subordinate to JSC Ukrtransgaz until December 31, 2019 – the deadline for the current agreement on the transit of natural gas with Gazprom. During this time, the Operator must obtain all necessary licenses and be pre-certified by the National Energy and Utilities Regulatory Commission with the subsequent confirmation by the Energy Community Secretariat.

On January 1, 2020, the Operator will leave the Naftogaz Group and will be transferred to the management of the organization authorized by the Cabinet of Ministers of Ukraine, which will be the final fulfillment of the condition on the independence of the GTS Operator.

The interaction between the Operator, which services the GTS facilities, and Ukrtransgaz, on whose balance sheet the GTS facilities are located, will be based on the Service Level Agreement (SLA).

A number of functions until the end of the current contract with Gazprom remains in the structure of JSC Ukrtransgaz – commercial activity, dispatching, procurement, which is required by the current license. These functions will be transferred to the Company on January 1, 2020, after receiving a license from the National Energy and Utilities Regulatory Commission.

During the second half of 2019, the final separation of business processes and IT systems between the GTS Operator of Ukraine, the Ukraine’s gas storage facility and service departments of JSC Ukrtransgas will take place.

GTS Operator of Ukraine LLC was established in February 2019. This made it possible to begin the legal separation of the gas transportation function – first in the structure of the NJSC Naftogaz of Ukraine, and after January 1, 2020 – outside the Naftogaz group.

 

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Tags: The Cabinet of Ministers, Gazprom, gas, Naftogaz, contracts, legislation, NEURC, Ukrtransgaz, gas transit, GTS, RF

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