Ukraine and Poland plan to double gas interconnection capacity

The transmission system operators of Poland and Ukraine have announced plans to nearly double gas transport capacity between the two countries. Ukraine currently needs to import larger volumes of natural gas from abroad, as domestic production has been curtailed by Russian attacks on its infrastructure. However, securing a long-term increase in transport capacity depends on the completion of infrastructure upgrades in Poland.

Ukraine has already substantially increased its imports of natural gas from abroad this spring, primarily from Poland and Hungary. The reason is the curtailment of domestic production due to Russian attacks on the country’s energy infrastructure, including gas production facilities. Ukraine is also facing relatively low gas storage levels in underground facilities, which it will need to replenish before the start of this year’s heating season.

Ukraine’s Ministry of Energy said last week, according to Reuters, that transport capacity between the countries would be increased from the current 6.4 million cubic metres per day to 12.4 million, nearly double the current level. The higher transport volumes are expected to be available through daily and monthly auctions starting in July. However, this increase is only a temporary measure until infrastructure upgrades in Poland are completed.

"The Polish route is one of Ukraine’s most important destinations for gas imports. Its importance will only grow, as the Polish gas transmission system provides access to diversified sources of natural gas, including liquefied gas from around the world," Ukraine’s Ministry of Energy said.

Modernisation of a station in Poland will enable a lasting capacity increase

Polish transmission system operator Gaz-System previously said that the modernisation of the Hermanowice metering station near the Polish-Ukrainian border is expected to be completed around the turn of this year and next. Upgrading the Hermanowice station is key to ensuring a sustainably higher transport capacity in the long term.

Once the upgrades are complete, Polish infrastructure will provide greater transmission capacity towards Ukraine. According to Gaz-System, available transport capacity will be assessed on an ongoing basis, and the volume offered will depend on several factors. These include the use of other export routes, demand from customers in Poland’s southern and south-eastern regions, particularly in the power sector, and the operation of underground gas storage facilities.

The goal is independence from imports by boosting domestic production

In recent months, Ukraine has faced intensive attacks on its energy infrastructure, which have also negatively affected domestic gas production. However, according to the National Bank of Ukraine, gas production in the country is expected to grow in the coming years.

This will also be supported by a loan from the European Bank, recently secured by Naftogaz, Ukraine’s largest natural gas producer. The company will also use the loan to purchase new mobile drilling rigs.