Page 52 - UKRRptSept18

Ukraine has raised natural gas reserves in its underground storage facilities (UGS) by 6.414bn cubic meters (bcm) after the end of the heating season, Ukrtransgaz said, or between April 8 to August 18, gas reserves in storage facilities grew by 86.3%, to 13.849 bcm from 7.435 bcm. Typically Ukraine has some 16-18bcm of gas in storage at the start of the heating season to supply the country and ensure smooth delivery to western European customers. If the existing volumes of imports and current domestic production are kept in August-September (1.6 bcm of gas every month in July-September), the country would have about 16 bcm of reserves in storage facilities in October.
Ukraine’s domestic gas production down 0.6% to 12bcm in 7M18
Ukraine’s domestic production of gas fell by 0.6% y/y over the first seven months of this year to 11.972 billion cubic meters (bcm), the state-owned gas transport company Ukrtransgaz said on August 3. However, gas output at Ukraine's largest natural gas producer Ukrgazvydobuvannya grew by 0.73% to 8.84bcm over the same period, UNIAN reports. The Ukrainian largest oil producer Ukrnafta in January-July of 2018 produced 610.3mn cubic meters (mcm) of gas, while other companies extracted 2.52 bcm, according to Ukrtransgaz. Ukraine’s domestic extracting companies increased gas output by 3.1% in 2017 vs 2016, to a total of 20.8 bcm – close to what the country needs to meet its consumption needs. Gas consumption in 2017 was reduced by 4% to 31.9 bcm, leaving a shortfall that has to be covered by imports from Russia. The government has a programme to boost Ukrgazvydobuvannya's gas output to close the gap and source all of the country’s gas needs from domestic sources. Ukraine is also home to significant shale gas deposits.
Ukraine boosted natural gas consumption in January-June 2018 by 2.8%,
or 500 million cubic meters (mcm) year-over-year, to 18.2 billion cubic meters (bcm). In particular, the industry consumed 6 bcm of gas (a 19.6% increase from January-June 2017), while households and budget organizations used 6.86 bcm (a 1.5% decrease), municipal heat suppliers – 3.9 bcm (a rise of 5.6%) and gas for industrial needs totaled 1.5 bcm (a fall of 28.6%), the Ukrainian Energy and Coal Ministry has said.
Ukraine’s state-owned oil pipeline monopolist Ukrtransnafta in July 2018 increased the volume of oil transportation by 12.6% compared to the same period in 2017, to 1.439mn tonnes, the company's press service said on August 7. "The volume of oil pumping for Ukrainian consumers (refineries) in July 2018 increased by 3.5% compared to July of last year, to 185,540 tonnes. Transit to the countries of Eastern Europe in comparison with July 2017 grew by 14%, to 1.253mn tonnes," the company said, reports Interfax.
9.1.2 Automotive sector news
The output of motor vehicles in Ukraine tumbled by 57% year-on-year (by 67% month-on-month), to 221 units in July, according to Ukrautoprom association. The result was attributed to a sharp decrease in the volume of semi knocked down assembly at the Eurocar plant, the only enterprise in the passenger segment of the domestic car industry operating this year. The plant assembled only 150 cars, which is two-times less y/y, and almost four-times less than the June output, Interfax news agency reported on August 14. The production of commercial vehicles last month was only five units, which is 10 times less than a year ago (the statistics data do not include KrAZ). At the same time, all the cars were produced at Cherkasy Bus plant, whereas in July 2017 it did not manufacture any such cars at all, and all 48 units were produced at Zaporizhia Automobile Plant (in July 2018 not a single one). In January-July, Ukraine companies produced 4,074 motor vehicles, which is 1.4% less y/y. Thus, for the first time since the beginning of this year,
52 UKRAINE Country Report September 2018 www.intellinews.com