Uktransgaz, the designated operator of gas pipelines in the Ukraine, and Gaz - System, its counterpart in Poland, have signed a cooperation agreement to consider the integration of their collective gas transmission systems.

The main purpose of the agreement is to see what investments are required to develop a cross-border transmission capacity. A feasibility study will be prepared as a part of the agreement, which will constitute the basis for making further decisions on the development of the transmission systems of both countries.

Specifically, in the Ukraine, a trunk line interconnector of 110 km is being planned which will run from Drozdowichi on the Polish border to Bilche - Volytoya in the Lviv region. The line will carry an estimated 8 billion cubic meters of gas per year from Poland to the Ukraine, and 7 billion cubic meters from the Ukraine to Poland. Gaz System says the interconnector will give both countries increased flexibility in dealing with any future bottlenecks.