In July, Ukraine will receive gas through the Trans-Balkan Corridor for the first time: this will happen within the July auction for the Route 1 tariff package, which provides for the supply of gas from Greece to Ukraine through five countries. About this reported Serhiy Makogon, ex-director of “Operator GTS of Ukraine” LLC.
“Demand for the new gas supply route from Greece to Ukraine is still insignificant. The volume of 3 million m³/d was put up, and only 0.163 million m³/d (\~5%) was sold.” Serhiy Makogon noted.
According to him, while the total cost of the route is estimated at €7-8/MWh, which is only slightly cheaper than alternatives via Slovakia, traders are deterred by regulatory uncertainty and complex administrative procedures.
“Fear of regulatory uncertainty and the complexity of administrative procedures also still deter traders,” Makogon explained.
However, Makogon calls Route 1 or the Trans-Balkan corridor a “unified super package of transport capacity”, which provides for one tariff rate for routes through Greece, Bulgaria, Romania and Moldova to Ukraine.
“Auctions are held on the RBP platform no later than the fourth Monday of the month (then July 28 for August). The results of this auction send a strong signal for the need for further fare reductions to increase the attractiveness of the route.” Makogon is convinced.
We will remind that Ukraine already imports gas from Hungary, Poland and Slovakia, and the new route through the Trans-Balkan Corridor opens up additional opportunities.
