Gas transportation system of Ukraine (2005-2007)

The gas transportation system (GTS) of Ukraine includes 36 ths. km of gas-mains of various uses and productive capacity, 71 compressor plants (CP) comprising 122 compressor workshops, more than 1,600 gas distributing stations, and 12 underground gas storages (UGS) with the largest after Russia active gas volume exceeding 32 bn cu. m or 21.3% of the total European active storage.

The GTS is able to receive up to 290 bn cu. m at the inlet and give 175 bn cu. m of natural gas at the outlet, including 140 bn cu. m directed toward countries in Western and Central Europe. More than 80% of Russian gas goes to Europe through Ukraine. Ukraine plans to increase carrying capacity of gas transportation system by 25%.

Volume of gas transit over 2005-2007, bn cu. m

Taking into account the terms of gas pipelines service and their technical condition, reconstruction of all compressor stations should be completed till 2015 to maintain reliable and effective servicing. Modernization and technical refit of gas transporting system should be finished before 2030 and apply the most contemporary and effective technologies. Around USD 700 mn are required for reconstruction and modernization of compressor stations of transit gas pipelines.

Based on the Frame agreement on institution bases for creating of intergovernmental systems of oil and gas transporting, the Common Working Group of experts was founded in 2002 consisting of representatives of Ukraine and the European Commission. Within the frames of the European Union International program for energy carriers’ transporting to Europe (INOGATE), the Commission is developing the ways to reform the system of Ukraine’s transit gas transporting network servicing.

To expand gas transportation system of Ukraine, activities are on the way at LLC “International consortium for managing and developing of Ukraine’s gas transportation system”, which regard the project of building the new gas pipeline Bogorodchany – Uzhgorod with 1,400 mm diameter. For reliable performance of the Bogorodchany-Uzhgorod gas mainline, the gross volume of Ukraine’s underground storage would need to increase in peak load periods by 7 bn cu. m up to 40 bn cu. m. Implementation of the project would increase carrying capacity of Ukraine’s GTS toward Uzhgorod starting from 5 bn cu. m to 19 mn cu. m in 2010.

The project for constructing and further servicing the Bogorodchany-Uzhgorod gas mainline ensures that extra volumes of natural gas transit through the Bogorodchany-Uzhgorod mainline can rise by almost 20% and allow higher charges on the Ivatsevichi-Dolina and Torzhok-Dolina gas mainlines, which have power reserve at the moment.

For reference: Ivatsevichi – Dolina gas pipeline has annual capacity of 29 bn cu. m, but in fact only 3-5 bn cu. m pass the pipeline each year. Torzhok – Dolina pipeline has a capacity of 6 bn cu. m per annum, the real volume passing through being equal to 1.5-2.7 bn cu. m each year.

Ukraine is also interested in creating of the international consortium for construction of Russian section of Alexandrov Gay – Novopskov gas pipeline, which will increase supplies of Central Asian gas to Ukraine up to 30 bn cu. m. The network of gas pipelines, which delivers Turkmen gas to Ukraine nowadays, has rather low carrying capacity at Kazakh and Uzbek sections of the gas pipeline Central Asia – Center, as well as Russian part of Alexandrov Gay – Novopskov pipeline.

Given the current geopolitical conditions, Ukraine has the opportunity to base its long-term policy on saving and developing its transport potential by taking into account the interests of all parties concerned: natural gas exporters – Russia, Central Asia (Turkmenistan, Kazakhstan, and Uzbekistan), and Iran, as well as gas importers in Europe. Ukraine will keep expanding the volumes of natural gas stored for foreign consumers in local underground storage.

Long years of gas transportation system operation demand capital overhaul and upgrading to completely meet European requirements. Also it is necessary to certify gas transportation system to assess its state and determine necessary amounts of investments for upgrading with the purpose to expand gas transportation volume.