GTSOU Restructuring: Parliamentary Committee Approves Splitting Power Generation and Gas Transit

The Verkhovna Rada Committee on Energy and Housing and Utilities has approved government bill No. 16146. The legislation proposes to decouple electricity production from the core gas transportation activities of GTSOU LLC. The committee recommended including the bill in the session agenda and adopting it in the first reading.

Corporate Restructuring Details

The plan involves spinning off a new entity from GTSOU, which will inherit all assets, rights, and obligations related to power generation. Corporate rights to this new company will remain state-owned and are slated for transfer to the statutory capital of NJSC Naftogaz of Ukraine. Critically, the state-owned property used for power production will be exempt from privatization.

• The separation must be finalized by January 1, 2027.
• The assets include 18 gas turbine units with a total capacity exceeding 300 MW.
• The move follows the Cabinet of Ministers' resolution No. 1155.

This restructuring is vital for meeting European requirements regarding the independence of gas transmission system operators. GTSOU is currently authorized to produce electricity only until early 2027. The bill ensures that these generating capacities can continue operating legally and without interruption under the new corporate structure.

"Since 2023, GTSOU has been constructing and operating distributed generation facilities," the company stated, highlighting that the 300 MW capacity was developed with both international donor support and internal funds.