Ukrainian gas measure change debate intensifies

Ukrainian gas industry participants disagree on how to implement a law that would transition Ukrainian gas reporting to energy units from volumetric space.

A version of the law being prepared for a second reading has proposed a uniform gross calorific value (GCV) of 10.35 kWh/m³ for stored gas.

Importers have raised concerns about the plans, saying that gas sourced from abroad and transferred to Ukrainian storage should be measured according to the actual GCV provided in the document certifying the transfer of goods to Ukrainian storage operator Ukrtransgaz. The real range is 10.60-10.62 kWh/m³, with the GCV differing depending on whether the gas is sourced from Poland, Slovakia or Hungary, traders said.

Applying a lower GCV to stored gas undervalues stocks, market participants said.

And Ukrtransgaz has called for the application of a uniform GCV of 10.59 kWh/m³, participants said. The conversion factor should be identical for each market participant, otherwise there is a risk of firms raising claims and starting lawsuits, Ukrtransgaz's acting chief executive, Sergiy Pereloma, said. The proposed uniform GCV in the second reading of the law of 10.35 kWh/m³ is an "irrelevant" measure, Pereloma said.

Some market participants said that a GCV range of 10.59-10.62 kWh/m³ would be most appropriate.

The law is expected to take effect on 1 May 2021, according to the second reading, a month later than previously foreseen.

By Victoria Dovgal