Centrenergo and Naftogaz are fighting. Will Trypilska TPP be closed?
Taking gas from the GTS without permission could lead to more serious results, as stated by ZN.
Three weeks after Naftogaz declared but then canceled an order to stop the gas supply to Trypilska TPP, the situation has not been resolved and has led to a large debt between three other companies not involved in the scandal.
At a meeting of the temporary investigation commission of BP on November 11, the risk of a large debt of Kyivoblgaz JSC to the GTS Operator of Ukraine was discussed due to the crisis in the Ukrainian energy market. This is because Naftogaz refuses to supply gas to Trypilska TPP (Centrenergo) and does not make an agreement with the company. However, due to the critical importance of the station for the Kyiv region, no one will allow it to be shut down or disconnected from gas.
The conflict between Centrenergo and Naftogaz
As a result, Trypilska TPP continues to take gas, and the cost is considered a debt of the regional distribution network operator – Kyivoblgaz to the GTS Operator of Ukraine. Naftogaz stands nearby with 11 billion cubic meters of gas in storage.
According to the former head of OGTSU Sergey Makogon, Trypilska power plant uses up to 3 million cubic meters of gas daily.
“For the first 7 days of November, the withdrawal is almost 20 million cubic meters. m, which is almost UAH 600 million, and in a month TPP withdrawals can reach 90 million cubic meters. m in the amount of UAH 2.7 billion,” Makogon emphasizes.
It's clear that neither Kyivvoblgaz nor OGTSU have the money to buy gas for almost UAH 3 billion for Trypilska TPP every month. Especially if it's just to give Naftogaz and Centrenergo time to settle their issues and finally sign a gas supply agreement.
But taking gas from the GTS without permission could lead to more serious consequences than just accumulating debts, which will ultimately fall on the state. It's more important to have a resource for the safe operation of the GTS, because gas is needed to maintain the proper pressure in the system, which is currently being taken by the Trypilska TPP.
The logical and expected step for the government is to finally implement the mechanism of assigning special duties (PSO), where Naftogaz becomes the supplier of critical facilities. This is why they buy gas, using money from the state, the entire gas market, and even from the GTS Operator. The obstacle to supplying gas on the terms of the PSO is the imminent expiration of the agreement on restructuring consumer debt to Naftogaz.
Deputy Energy Minister Nikolai Kolesnik mentioned that the ministry is preparing a resolution to extend the deadline for agreements with Naftogaz. This will help manage the risk of oblgas shutdown in conflict regions. So there is hope that officials understand the urgency.
In his article for ZN.UA, Nikolay Teslya wrote that Naftogaz is broke, there's not enough gas in storage, and the influence of oligarchs is stronger than ever. International partners refuse to finance the mess that Naftogaz has become without a return to civilized corporate governance practices. Read about this in the article – Naftogaz Must Be Dismantled.
DOSSIER: Anatoly Shkriblyak: a small giant of big corruption. PART 1
Vitaly Kropachev: what is the coal “watcher” of the presidential “family” hiding? PART 1
London-based hedge fund VR Capital blocks Naftogaz debt restructuring – FT
Naftogaz does not allow representatives of the State Audit Service: BP’s Interim Commission requires an audit of the company and its subsidiaries