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Translated by Ollie Richardson & Angelina Siard

01:56:03
13/11/2017

reform.energy

NAK “Naftogaz Ukraine” concluded with Rothschild S.p.A. (Milan, Italy) a contract for providing investment banking services in the unbundling the activities for gas transportation and involving a partner to manage the gas transportation system (GTS) of Ukraine. According to data in the ProZorro system, the cost of the contract signed on November 8th will be 98 million UAH (including VAT). The services must be rendered during the period before December 31st, 2020.

The investment adviser must give an assessment of the risks of unbundling and a recommendation on the reduction of their negative impact; to create conditions for the successful selection of a qualified partner in management of the GTS; to help with the structuring of the relationship with the main interested parties (shareholder operators of the GTS, clients, creditors, State bodies).

The contractor must provide help in the preparation of the documents necessary for the process of selection of the qualified partner, including the preparation of the project of conditions and the order of holding a competition and the criteria of choice, and also the preparation of a list of potential partners. Besides this, the list of their tasks includes defining the main commercial terms of the deal with the qualified partner, structuring of the deal, information and other necessary maintenance of the partner’s involvement.

At the same time the Ministry of Energy and Coal Industry, because of the announced NAK tender for investment banking services in the unbundling and the involvement of a partner to manage the GTS, accused the company of tugging the functions of the Cabinet of Ministers towards itself.

As was reported, at the beginning of April, 2017, “Naftogaz Ukraine”, “Ukrtransgaz”, Snam (Italy), and Eustream (Slovakia) signed a memorandum of understanding in the joint assessment of opportunities for cooperation in the use and development of the GTS of Ukraine.

At the same time the Vice-President of the European Commission (EC) for Energy Union Maroš Šefčovič noted that there are also some other companies that would be interested in joining the memorandum.

According to the head of Naftogaz Andrey Kobolev, Ukraine must present a concrete proposal on the involvement of a European partner in the management of the GTS already at the beginning of 2018. According to him, potential participants of the consortium on the management of the GTS of Ukraine want to completely control its work. Whether there will be a concession or leasing is still under discussion.

The capacity of the GTS of Ukraine on entrance is 288 billion cubic meters, at the exit – 178.5 billion cubic meters, including to the countries of Europe – 142.5 billion cubic meters, and Moldova – 3.5 billion cubic meters.

“Naftogaz Ukraine” unites the largest oil and gas extraction enterprises of the country. The holding is a monopolist on the transit and storage of natural gas in underground storages and also on oil transportation by pipeline transport across the territory of the country.

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  • Vtran

    Come 31 12 2019 all RF tranzit through Ukraine ceases …. so what tranzit are they talking about to Dec 2020 ??