Next steps towards implementation of the Gas Interconnection Poland – Ukraine

Photo of the article The Polish and Ukrainian transmission system operators – GAZ-SYSTEM S.A. and PJSC "UKRTRANSGAZ" plan to begin engineering works aiming at the implementation of the interconnection integrating transmission systems of both countries, the Gas Interconnection Poland – Ukraine.
In December 2015 both TSOs finalized works on the feasibility study and the final arrangements on the technical and business specifications of the Project were taken. The planned Gas Interconnection Poland – Ukraine includes the construction of a new gas pipeline between Hermanowice gas node on the Poish side and Bliche Volytsia on the Ukrainian side. For the proper functioning of the interconnector, following investements are necessary to be completed in Poland: construction of the compressor station in Strachocina as well as following pielines: Hermanowice - Strachocina, Strachocina - Pogórska Wola, Pogórska Wola - Tworzeń and Tworóg - Tworzeń. The Project Promoters expect that the Project will be ready for the full commercial operation starting from 2020.
After implementation of the first phase of the Project, the new interconnection should allow for the increase of the export capacity of natural gas from Poland to Ukraine to a maximum of 5 bcm/year (depending on the technical parameters of gas transport in the transmission system). The implementation of the second phase of the Project may allow for increasing of the export capacity up to 8 bcm/year, but the decision on the implementation of the second phase will depend on the confirmed market interest.
The main objective of connecting Polish and Ukrainian systems is to diversify gas supplies for Ukraine and further integration of transmission systems (therefore the energy markets) within the region of Eastern Europe. The development of new transmission capacities would ensure the increase of the energy security and diversification of supplies for Ukraine via Polish transmission system. Commissioning of the Project will contribute towards enlarging the area covered by the North - South Corridor due to stronger integration of Ukrainian transmission network with the CEE Region. The project will also significantly increase the volume of integrated gas market within the region. Such a scale effect should positively influence the competition and attractiveness of the region in the perspective of market participants.

The North - South Gas Corridor
The integration of Polish and Ukrainian transmission systems is a part of the North – South Gas Corridor allowing from transmission of purchased gas from the LNG terminal in Świnoujście through the countries of the CEE via cross-border interconnections. The objective is to establish a flexible transmission infrastructure within the CEE which will allow for connecting western gas markets and global LNG market with the market of the CEE.
 
GAZ-SYSTEM S.A. has already started the project in the Polish transmission system as a part of the North – South Gas Corridor. This will involve the expansion of the transmission system in western, southern and eastern Poland. Those projects have been classified by the European Commission as Projects of Common Interest (PCI).
 
GAZ-SYSTEM S.A. has started providing gas transportation services through the Hermanowice point to Ukraine since 1 November 2012. The service is currently provided on an interruptible basis what means that it may be interrupted or limited due to gas flow conditions occuring in the Polish or Ukrainian networks. The maximum technical capacity of the transmission of gas through the Hermanowice point to Ukraine, in favourable technical conditions of the spread of gas in both countries, is currently up to approximately 1.5 bcm/year.