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Ministry of Energy and Coal Industry of Ukraine and the European Commission will work out an optimal model aimed at reforming underground gas storages
17.07.2017 | 15:25
MINISTRY OF ENERGY AND COAL INDUSTRY OF UKRAINE

Ukraine and the European Union have launched an ambitious project of comprehensive study of the Ukrainian underground gas storages (UGS), which is designed to work out the optimal model for the reform of domestic gas storage facilities. The Ministry of Energy and Coal Industry of Ukraine acts as an ultimate beneficiary of the said project and expects to receive from the European Commission a roadmap - a model for reforming domestic gas storage facilities.

The project will be carried out by a consortium consisting of a top global management consulting firm, French operator of underground gas storages (Storengy) and an international law firm (CMS Cameron McKenna Nabarro Olswang).

Gas storage facilities are the basis for the development of the gas market of Ukraine, thus the implementation of this project is one of the prerequisites for the creation of a competitive environment, Deputy Minister of Energy and Coal Industry Ihor Prokopiv said.

The research will yield the demand for gas storage products in the following 20 years and opportunities for Ukraine in the UGS market. The findings will be used to generate several strategy scenarios for the optimal use of Ukraines UGS facilities.

The project team will analyze whether any of the storage facilities are necessary for an efficient operation of Ukraines gas transmission system. Thereby, the project is of utmost importance for the implementation the Law of Ukraine "On Natural Gas Market and the fulfillment of Ukraines commitments towards the unbundling of the gas transmission function from Naftogaz.

The project is funded by the European Union and seeks to develop a sustainable economic approach to the use of Ukrainian underground gas storage facilities in the context of the European and Ukrainian energy markets.

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