First virtual interconnection point of gas transmission capacity allocation in the history of the Energy Community established between Ukraine and Hungary

On 1 May, the Ukrainian and Hungarian gas transmission system operators, LLC and FGSZ, established the first virtual interconnection point “Bereg” on two interconnection points (Beregovo and Beregdaróc) according to the Capacity Allocation Mechanism (CAM) Network Code. This decision marks the first ever virtual interconnection point between a Contracting Party to the Energy Community and an EU Member State. It follows Ukraine’s decision to perform the first allocation of cross-border capacity on the border with Poland at the Polish GSA Platform Operator.

A virtual interconnection point (VIP) consists of two or more interconnection points which are integrated together to provide a single capacity service. The merging of the two interconnection points will facilitate trading on both sides of the border and increase liquidity in both market zones. 

The Energy Community Secretariat welcomes the first implementation of a VIP in the Energy Community and is happy to have been involved in this successful outcome by providing its support to the Ukrainian national regulatory authority, NEURC, in the recent amendments to the Gas Transmission Code.  The Secretariat also compliments the efforts of the Hungarian authorities to enable the implementation of the EU gas acquis at the border with the Energy Community Contracting Party.