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gas in storage. As of today, 10-15% of these volumes belong to non-residents, however, it can be sold here, if prices in our market are not lower than European prices. Vitrenko added, Ukrgazvydobuvannya now produces about 12.7-12.8bn cubic meters of gas, and the population consumes about 13.4-13.6bn cubic meters, depending on the temperature.
Naftogaz signed the first three memorandums during the Ukrainian Gas Investment Congress in Kyiv. The first memorandum was signed with Ireland Dragon Oil on the exploration and development of deposits in the Black Sea. The second memorandum with the Azerbaijani oil producer Socar, to develop technologies for exploration and production activities in Ukraine both on land and at sea. The third memorandum was signed with US firms Helmerich & Payne and 3 Seas Energy, a partnership to explore and develop its business in the Black Sea Basin, reported Naftogaz.
Russia’s Gazprom is fulfilling its gas transmission contract, sending 109 million cubic meters across Ukraine daily, but it is spurning Ukraine’s offer to send 80 million more cubic meters daily, says Serhiy Makogon, CEO of Ukraine’s gas pipeline Operator. A gas shortage in the EU has caused prices to triple since August. Although Ukraine’s pipelines have the capacity to move 146 billion cubic meters, Gazprom has contracted to send less than one third of that volume – 40 bcm a year from 2021-2024.
Volume of gas transit through Ukraine decreases to a minimum of 109 million cubic meters. In September 2021, the transit of natural gas through the Ukrainian gas transportation system to Europe was 3.257 billion cubic meters. In September 2021, Gazprom booked only 4% of the additional guaranteed transit capacity. As a result, the average daily volumes of Russian Gas transported through Ukraine this month fell to 109 million cubic meters reported 112.international.
Slovakia, the main entry point for Russian gas entering the EU from Ukraine, says it will increase its capacity of reverse flow to supply Ukraine.After greater pipeline connectivity was proposed at Tuesday’s EU-Ukraine summit, Slovak Prime Minister Eduard Heger tweeted in response: “We are ready to be part of this European solution.” Only Slovakia has the pipelines and the gas flows to do this, Katarína Mathernová, the European Commission’s Deputy Director-General for Neighborhood Policy, tells Euractiv Slovakia. “Neither Hungary, Poland nor Romania have a similar connection,” says Mathernová, a Slovak. “Slovakia has capacities for the reverse flow of natural gas, which are not used. The point is to be prepared for the situation where the need for supply to Ukraine becomes urgent. It is a solution to provide Ukraine with enough gas for the future.” By switching one pipeline to move gas from west to east, gas could flow from Austria’s Baumgarten hub, through Slovakia to Ukraine, proposes Serhiy Makogon, CEO of Ukraine’s pipeline Operator. After the Tuesday summit, Olga Belkova, international cooperation director for the Operator, told Interfax-Ukraine: “We welcome and support the position of the European Commission voiced by EC President Ursula von der Leyen on the possibility of increasing reverse gas supplies to Ukraine from the EU, in particular from Slovakia.”
Due to the adoption of a 6-month freeze natural gas prices, Ukraine’s “private gas companies will be forced to stop investment in exploration, field development and drilling of new wells,” warns the Association of Gas Producers of Ukraine. This slowdown could cause company losses and tax losses totaling $380 million, warns the Association, a group of the largest
54 UKRAINE Country Report November 2021 www.intellinews.com