Ukraine’s Gas Transmission System Operator, together with operators of neighboring countries, is launching a new mechanism for allocating gas capacity at cross-border interconnection points. The first annual auctions will begin at the borders with Hungary, Romania, and Moldova. Auctions at interconnection points with Poland and Slovakia have been postponed indefinitely.
Previously, market participants booked capacity separately on each side of the border through two different auctions. Under the new system, they will be able to reserve capacity through a single auction and a single capacity product. This significantly simplifies the procedure for cross-border gas trading.
The mechanism became possible after the National Energy and Utilities Regulatory Commission (NEURC) decided in June to switch to bundled capacity products starting from the 2026/2027 gas year. This represents another step in integrating Ukraine’s gas market into the EU network.
The introduction of bundled capacity products will contribute to:
- further integration of Ukraine’s natural gas market into the EU internal market;
- more efficient use of cross-border gas transmission infrastructure;
- development of cross-border gas trade;
- strengthening regional energy security.
“The implementation of this mechanism is the result of close coordination with neighboring gas transmission system operators, national regulators, and European institutions,” said acting CEO of the Gas Transmission System Operator of Ukraine Natalia Boiko.
While cross-border auctions are being launched, Ukraine continues accepting applications for the allocation of annual capacity at domestic entry and exit points. The process began at the end of June and will continue until July 13, 2026.
It should also be noted that NEURC has already amended the regulatory framework for allocating capacity at cross-border interconnection points. Capacity is now measured in energy units rather than physical volumes, which also brings Ukraine’s system in line with EU standards.
