France's Engie has signed an agreement with Ukraine's gas transmission system operator UkrTransGaz aimed at further developing the company's presence in Ukraine's wholesale gas market.
Under the deal, which was signed October 28 at the presence of Ukraine's Prime Minister and France's Minister for the Economy and Finance Michel Sapin, Engie is to reserve transport and gas storage capacities in Ukraine, starting this winter.
“This makes Engie the first European energy player to be actively involved in Ukraine's wholesale gas market” the company said in a statement.
In 2015, Engie became Ukraine's main Western supplier of natural gas, providing 3.5 billion cubic meters of gas, mainly to State-owned Naftogaz “thus contributing to the country’s security and diversity of supply” it said.
In addition, last summer it established the subsidiary Engie Energy Management Ukraine, which “aims to develop a platform of sustainable and profitable activities for major industrial customers on the wholesale natural gas market (imports, transmission, storage, trade) and potentially as a second step on the electricity trade market.”
Ukraine's gas market is the biggest in Eastern Europe, with 34 Bcm consumed in 2015. Ukraine also joined the European Energy Union in 2010 and “is engaged in significantly reforming its energy sector, paving the way for the liberalization of its national market which began in October 2015, pursuant to the Third European Directive,” Engie explained.
"Engie is cementing its position as a pioneer on energy markets undergoing liberalisation” commented Edouard Neviaski, CEO of Engie's Global Energy Management Business Unit.
“By creating this subsidiary in Ukraine and signing the agreement with UkrTransGaz, Engie is showing that it is a long-term partner of the Ukrainian economy financing and development," he said, adding that "Engie wants to consolidate its position as benchmark midstreamer in Europe.”
