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Sunday, October 23, 2016

Ukrainian GTS is coming to a critical degree of wear

Ukraine had to stop gas imports from Poland because of the accident on the gas pipeline in Lviv region. The accident occurred after only a month and a half after scheduled maintenance – that was another sign of how bad the condition of the Ukrainian gas transportation system (GTS). The frequent crash of Ukrainian pipes into the hands of Gazprom, and especially the project “Northern stream – 2”.

Ukraine suspended imports of natural gas from Poland because of an accident on the main gas pipeline (MGP) of Komarno – Drozdovychi, reported the press service of Ukrtransgaz, the operator of the Ukrainian gas transportation system.

“Wear the gas transportation system of Ukraine is so critical that we are dealing with frequent accidents. And they will continue to happen more and more often”

On a plot of IHL in Lviv region early Friday morning depressurization pipe with a diameter of 800 mm. no Casualties were reported.

In Company calm, that nothing terrible had happened, the accident did not affect the supply of the Ukrainian consumers and gas transit to Europe. Reverse gas from the Polish direction can be redirected to other gas corridors, if there are requests from traders.

“According to the Slovak and Hungarian corridor for the corridor has free capacities, which allow, in the presence of requests from traders, to block the volumes of supply of gas temporarily halted on the Polish route,” – said the press service of Ukrtransgaz, reports “Prime”. The company promised within three days to eliminate the accident and to resume the reverse gas from Poland.

But now Kiev is important for every one million cubic meters of gas, and any route counts. Because the current rate of gas injection into underground storage for the worst the last two years, that they recognize themselves the Ukrainian energy sector. UGS uploaded a total of 13 billion cubic meters, the Ukrainian Cabinet of Ministers has recently set a goal to increase the volume to 17 billion more than common, as smaller volumes in underground storage facilities through the winter is too risky. That’s just to put the goal we had back in the spring and not in early September. Now Naftogaz needs in the rush to pump the maximum volume, and such accidents quite out of place.

But the most dangerous thing in this situation that there is no guarantee that similar or even a more large-scale accident will not happen at the other site and on a different route. And even more dangerous if this happens in the winter.

“Three days, stop deliveries from Poland – this is not critical. But if the winter will be a repeat problem, then the situation will worsen. In the case of breakdowns dramatically reduces the reliability of gas supplies to the EU”, – said the newspaper LOOK associate Professor of the higher school of Ranepa, senior researcher of the sector of the energy policy Institute of Economics of RAS Ivan Kapitonov.

“The situation with gas injection sad. Of the 17 billion cubic meters have 10 billion cubic meters of subtract, since it is a necessary level in a vault that Ukraine will not touch, to be able to pump gas to the EU (talking about the technical gas, which should not be lifted from underground storage facilities – approx. OPINION). So in winter things will happen no matter. The people have to resort to the use of alternative fuels for heating their homes,” says Kapitonov.

Only in June 2016, the company proudly reported that the number of failures on main gas pipelines of Ukraine in 2015 decreased by 21%. And there assured that the vast majority of failures last year was the intentional damage of pipelines. However accidents continue to occur, which is not surprising, given the deterioration of the Ukrainian GTS and systematic underinvestment in its modernization and renovation. This is confirmed by the fact that recently – in July this year on the gas pipeline Komarno – Drozdovychi in the Lviv region held preventive maintenance. It was reported that it was eliminated defects and replaced parts of the pipeline. It was just 3.4 km away. refurbished However just a little over a month on this IHL is still an accident occurs. Probably something is missed or poorly done scheduled maintenance. “This means that they can not fully maintain the system,” said Kapitonov.

“Wear the gas transportation system of Ukraine is so critical that we are dealing with frequent accidents. And they will continue to happen more and more often. Already it is long overdue replacement of the majority of equipment that needs funding,” says Ivan Kapitonov. Recent estimates, which are officially held Ukraine, date back to 2010. Then on the full recovery of the CTA needed $ 6 billion. But, of course, then means were found, and now they are not even more so.

“At the moment require about us $ 9 billion to make it all run, and the system began to function fully. This is comparable with the cost of building Nord stream – 2″. The maximum price taking into account all financial resources of 9.8 billion euros. For the European colleagues promising and cheaper to make a new pipe, which will save costs on transportation of the transit countries rather than to support outdated transportation system of Ukraine”, – said the interlocutor of the newspaper VIEW.

This is confirmed by the fact that the shareholders in the face of Gazprom and its six partners are ready to Finance Nord stream – 2″, while those wishing to invest in the modernization of the Ukrainian GTS no.

“Kiev has recently had the idea to sell part of the assets of GTS to the Americans. But she found no support in the American community, because who is going to buy outdated GTS, who needs it?” reminds Kapitonov.

Russia a few years ago were willing to pay real money for the Ukrainian pipeline and to invest further in its modernization, but Ukraine refused, dreaming about some Western overseas hosts for the GTS. But no more than restore a rusty Ukrainian pipes would not.

European partners have several years of negotiating just about to give some money to Naftogaz to repair the pipe. In particular, the European Bank for reconstruction and development (EBRD) and European investment Bank (EIB) a loan for the modernization of the GTS, a total of 300 million euros. Hence, the Bank offers 150 million euros to repair just a single 100-km section of pipe on the Ukrainian territory, but the length of the entire export GTS ten times more. At the same time on each such parcel must not for 150 million euros (170 million dollars), and five times more – $ 900 million. In other words, this is too little to radically change the situation with the Ukrainian pipe. Not to mention the fact that this is not infrastructure investment, and loans.


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