Ukraine does not plan to put gas transmission capacity for auction after end of transit agreement with Russia
Ukraine is not going to negotiate with Russia on extending the contract for the transit of Russian gas to Europe, which ends in 2024, and also does not plan any deals, head of the division for cooperation with clients of the GTS Operator of Ukraine Andriy Prokofiev said during the Flame conference.
According to him, the lack of deals from a practical point of view means that Ukraine "will not offer any capacity at auction."
The current transit contract between Gazprom and Naftogaz Ukrainy was concluded at the end of 2019 for the period until the end of 2024. It provided for the transit on a "transmit or pay" basis of 65 billion cubic meters in 2020 and 40 billion cubic meters in subsequent years. However, in 2022, GTSOU declared force majeure on gas acceptance for transit through part of the gas pipelines and currently provides intake of no more than 42.4 million cubic meters per day (up to 15.5 billion cubic meters per year).
The European model for booking gas transportation capacity provides for their distribution not through long-term contracts, but through auctions. The next 2025 booking auction on the European industry calendar is scheduled for July 1, according to some booking platforms. Further, capacities can be offered at quarterly, monthly and daily auctions.