Central, SE European TSOs Ink Deal to Harmonize Gas Quality Standards

Natural gas transmission system operators (GTSOs) in Central and Southeastern Europe have signed a memorandum of understanding (MOU) to work on harmonizing supply quality requirements as they prepare for the gradual abandonment of Russian gas, Gas TSO of Ukraine LLC (GTSOU) said.

“This agreement outlines a common approach and action plan to harmonize requirements for natural gas quality at interconnection points in the region”, GTSOU said in a statement.

The other signatories are Bulgaria’s Bulgartransgaz EAD, Greece’s DESFA SA, Hungary’s FGSZ Ltd., Greece-Bulgaria interconnector operator ICGB AD, North Macedonia’s Nomagas JSC Skopje, Croatia’s Plinacro Ltd., Slovenia’s d.o.o., Romania’s Transgaz SA and Moldova’s Vestmoldtransgaz SRL.

The agreement comes as the Ukraine-Russia gas transit deal nears its expiry in December, which would leave Europe needing to reroute 7.2 billion cubic meters (254.27 billion cubic feet) of supply, according to a Rystad Energy analysis published July 16.

“When the Russia-Ukraine transit agreement ceases, the only alternative supply routes for Central and East European countries would be the Balkan Stream and the Horgos entry point between Serbia and Hungary”, Rystad said.

The 10 operators are members of the Central and Southeastern Europe Energy Connectivity (CESEC) group, established in 2015. CESEC aims to fast-track cross-border projects that diversify the countries’ sources for gas and integrate their gas and power markets, as well as expand renewable energy deployment, according to CESEC chair the European Commission.

“As noted in the Memorandum, Central and Southeastern Europe historically depended on the import of Russian natural gas, the physicochemical properties of which have specified the requirements for natural gas quality along the respective routes both at the national level and at the interconnection points”, GTSOU said in the statement on its website.

“Compatibility and market integration of gas systems in the CESEC zone require further efforts in the context of supply diversification and gradual abandonment of Russian gas, as foreseen in the RePower EU plan.

“The diversification of supply and the development of cross-border trade require the GTS operators to adapt requirements, taking into account the varying natural gas quality from different sources”.

GTSOU general director Dmytro Lyppa said, “In order to make the region more open to diversification of supplies, we must not only build new gas transmission routes, but also ensure the compatibility of requirements for natural gas quality at all interconnection points”.

The MOU was the result of talks held since 2022, GTSOU said, adding: “The goal is to eliminate artificial barriers to natural gas transportation”.

Lyppa earlier called for the removal of “bottlenecks between systems” that hinder gas delivery between Central-Eastern Europe and the Balkans.

“Gas TSO of Ukraine is working diligently on developing new routes to maximize the potential of Ukrainian infrastructure, enhancing its flexibility and maneuverability”, Lyppa told the Energy Community Gas Forum in September, according to a GTSOU press release at the time.

On the new Trans-Balkan pipeline, Ukraine and Moldova have enabled one million cubic meters (35.31 million cubic feet) of daily capacity from September 1, as announced by GTSOU September 11.

“In the medium term, an increment of more than 7 million cubic meters [247.2 million cubic feet] per day is achievable, since the infrastructure of the Trans-Balkan pipeline system has already been constructed and further capacity growth will only require increasing reverse capacities along the route”, it said then.

The project also involves Romania. “We will work together to increase the interconnection capacity of the Trans-Balkan natural gas route as part of the Vertical Gas Corridor, including harmonizing the gas quality parameters and developing projects dedicated to the production of green hydrogen using renewable energy sources”, the foreign affairs ministers of the three countries said in a joint statement July 5.

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