You're reading: Ukrtransgaz, Hungary’s FGSZ sign agreement allowing virtual reverse of gas

PJSC Ukrtransgaz, the Ukrainian operator of the gas transportation system, and Hungarian operator FGSZ on May 29 signed an agreement on the merger of cross-border gas pipelines (an interconnection agreement) between Ukraine and Hungary, the press service of Naftogaz Ukrainy has reported.

“The agreement concerns all gas pipelines crossing the Ukrainian-Hungarian border and is fully consistent with EU energy legislation. In this sense, this is the first such agreement between Ukrtransgaz and the gas transportation system (GTS) operator of the neighboring EU country. According to the intention of the European Commission, this agreement will serve as a model for other interconnection agreements between the gas transportation system operators of the EU member states and Ukrtransgaz,” the press service said.

The interconnection capacity in the direction of Hungary is 26 billion cubic meters per year, towards Ukraine – 6.1 billion cubic meters per year.

“The agreement signed is the first step towards the establishment of full cooperation between Ukrtransgaz and the GTS operators of the neighboring states,” reads the report.

According to Naftogaz, at present Ukrtransgaz cannot fully cooperate with the GTS operators of neighboring EU member states because of their current interaction scheme with Gazprom. This scheme was formed in Soviet times and does not meet the current legislation of the Energy Community, to which Ukraine belongs.