Ukraine has started physical import of gas from Hungary for the first time as part of the agreements with the Hungarian FGSZ. Prior to this, the gas transmission system between the two countries worked only in one direction—from Ukraine to Hungary.
The Hungarian direction has become the second guaranteed route for gas supplies to Ukraine after Slovakia, even in the absence of the transit. The opening of this direction created an opportunity for traders to organize supplies of LNG to Ukraine from a terminal in Croatia.
CEO at GTS Operator of Ukraine
The agreement between the parties will allow physically transporting up to 8 million cubic meters of gas from Hungary to Ukraine on a day-to-day basis. Together with the available daily capacity from Slovakia (27 million cubic meters), the total guaranteed capacity for gas imports to Ukraine will increase to 35 million cubic meters per day.
The current agreement will be valid until September 30, 2022. The GTS Operator of Ukraine is working on the introduction of guaranteed capacities for imports from Hungary on a permanent basis, as well as maximizing their level. The first monthly auction will be held on January 17th.
Context. Amid a decrease in gas transit from Russia, the GTS Operator of Ukraine continues to work with its strategic European partners to improve the capacity of the routes for the physical supply of liquefied natural gas LNG to Ukraine.