GasCos To Invest More In State Gas Pipelines

Gaz Ukrainy announced that it wants to include a new item in gas network lease agreements, according to which GasCos are obliged to spend no less that 4% of their networks value annually on upgrades. Alexander Paraschiy: Gaz Ukrainy wants to force regional gas distribution companies (GasCos) to upgrade the state pipelines which they rent. Currently GasCos have no incentives to invest in state pipelines, and mainly are concentrated on the upgrade of pipelines which they own, or in construction of new pipelines. The initiative of Gaz Ukrainy looks logical: investment obligations are an alternative to lease payments.