Ukraine gas grid operator enters market, builds up liquidity

LONDON (ICIS)–Ukrainian gas traders have welcomed a decision by the gas transmission system operator GTSOU to buy volumes on the market amid expectations it would help whip up liquidity.

GTSOU has been active on exchange UEEX since 19 January, buying in excess of 3.3 milion cubic metres, according to a statement by MGU, the shell company established to oversee the gas grid operator.

Market sources said GTSOU’s presence on the exchange was needed as it would help to build liquidity on the balancing market.

The company may have been buying volumes to balance the system and is thought to have sold volumes previously to clear positive imbalances, but this could not be confirmed officially.

GTSOU had been previously buying volumes on the online transparency pro-Zorro platform but under latest legislative changes it can trade volumes on organised energy platforms such as the exchange UEEX.