Increased Integration of Ukrainian and Polish Transmission Systems and Gas Markets: Final Report

The project began in 2018 with funding from the United States Agency for International Development (USAID). The ESP was implemented by Tetra Tech ES, Inc., the prime contractor for the project. The ESP focused on three key areas: technical assessment, market screening, and legal and regulatory assessment. The technical assessment involved evaluating the Polish gas transmission system, the Polish Świnoujście LNG terminal, and the Ukrainian gas transportation infrastructure. The assessment identified several challenges, including the need for increased capacity and improved infrastructure. The market screening component of the ESP analyzed historical gas supply and demand in Ukraine and Poland. The analysis revealed that Ukraine's gas market is highly dependent on imports, while Poland is seeking to diversify its gas supply. The ESP also assessed the potential for increased gas storage in Ukraine and Poland, highlighting the need for improved regulatory frameworks and infrastructure. The legal and regulatory assessment component of the ESP evaluated the existing legal framework for gas transmission and storage in Ukraine and Poland. The assessment identified several gaps and inconsistencies in the regulatory frameworks, including the need for clearer rules on third-party access and tariff harmonization. The ESP also provided recommendations for improving the regulatory frameworks, including the development of a new network code for gas transmission and storage. The ESP also assessed tariffs and bundled product services in the Ukrainian and Polish gas markets. The assessment identified several challenges, including the need for clearer rules on tariff harmonization and the development of new bundled products. The ESP provided recommendations for improving the tariff structures, including the development of a new network code on harmonized transmission tariff structures for gas. The ESP concluded that increased integration of the Ukrainian and Polish transmission systems and gas markets is essential for improving energy security and reducing dependence on imported gas. The project recommended several key actions, including the development of a new network code for gas transmission and storage, the improvement of regulatory frameworks, and the development of new bundled products. The ESP also highlighted the need for improved infrastructure and capacity to support increased gas trade between Ukraine and Poland. The ESP was completed in March 2021, and its findings and recommendations are expected to inform future policy and regulatory decisions in Ukraine and Poland. The project's results are also expected to contribute to the development of a more integrated and secure European gas market.