Trans-Balkan route: Ukraine approves implementation of a joint capacity reservation product

The introduction of a joint product for capacity reservation from Greece to Ukraine will provide an opportunity for alternative and competitive natural gas supplies and strengthen the region's energy security.

The gas transmission system operators of Ukraine (GTS Operator of Ukraine LLC), Bulgaria (Bulgartransgaz EAD), Greece (DESFA SA), Moldova (VestMoldTransgaz SRL) and Romania (Transgaz SA) have appealed to their national regulators with this initiative.

On the Ukrainian side, the National Energy and Utilities Regulatory Commission (NEURC) made the decision at its meeting on 27 May.

"Having abandoned russian energy carriers, Ukraine, like our partners in the EU, is actively working to find alternative gas supply routes. The use of the Trans-Balkan route is important in this context. Ukraine's gas transmission system, as well as our underground gas storage facilities, which are part of this route, will play an important role in strengthening the energy security of the entire region. Therefore, we look forward to positive decisions by all participating countries to use the Trans-Balkan route for our common strategic goals," said Minister of Energy of Ukraine German Galushchenko.

The Trans-Balkan pipeline has significant potential to meet Ukraine's urgent needs and provide access to LNG sources.

Meanwhile, the route runs through five countries, and the direct application of regulated tariffs makes it commercially unprofitable compared to alternatives. Given the situation, the GTS operators have worked out an optimised solution that will allow, among other things, to use the already unused capacity of the Trans-Balkan pipeline to import gas to Ukraine at a competitive tariff, which is especially important in preparation for the next heating season.