Smart network bill to optimize excess capacity of Ukrainian GTS

MOSCOW. Aug 23 (Interfax) - A bill clarifying smart network terminology, which was adopted by the Ukrainian parliament this week, will also help optimize excess capacity of the Ukrainian gas transmission system (GTS), Ukrainian media said, citing the press service for the Gas Transmission System Operator of Ukraine.

"The bill will help optimize excess capacity of the gas transmission system, consistent with the needs of Ukrainian clients, through a special mode of operation for particular elements of non-key trunk pipelines," the statement said.

According to Gas Transmission System Operator head Dmitry Lippa, maintaining the GTS excess capacity diverted resources from investment and modernization of priority facilities.

"It [the bill] will allow the operator to save about 1-billion-hryvni budget funds each year by cutting expenses on maintenance of unused facilities and fuel gas consumption," he said.

For example, the bill facilitates temporary shutdown of trunk pipelines amid limited natural gas transit.

The operator transports natural gas to clients in Ukraine and the European Union.

The Ukrainian GTS has an inlet capacity of 281 billion cubic meters and an outlet capacity of 146 billion cubic meters. Russian natural gas transit through the Ukrainian GTS decreased by 28.4% (by 5.813 billion cubic meters) year-on-year to 14.647 billion cubic meters in 2023.