Page 58 - UKRRptSept20

9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1​ Oil & gas sector news
European gas traders have more than quadrupled the volume of natural gas they store in western Ukraine’s underground reservoirs,​ reports Ukrtransgaz. Offshore companies have parked 5.3 billion cubic meters under a customs warehouse regime that allow them to store gas duty free, paying only rent. As Europe’s gas reservoirs fill up with cheap gas, the number of companies storing gas in Ukraine has jumped to 68 today, from 28 this time last year. Ukrtransgaz has 11 underground gas storage facilities with a total capacity of 31 bcm – equal to the total storage capacity of Italy, France, Hungary and Austria combined. “The Ukrainian gas market has become the safety valve of Europe.”
Naftogaz​ gas supply company LLC will increase the price of natural gas within the Monthly package sold in September by 45.1% ​(by UAH1.46/cubic meter) compared to August, to UAH4.7 per cubic meter (including VAT, excluding delivery). In addition, according to a statement on the company's website, the company in the second half of September will increase the price of gas for household consumers within the framework of the Annual package. From September 1 to September 15, the price for 12 months can be fixed at the level proposed in August at UAH4.73/cubic meter, and from September 16 to September 30 it will increase by 10.8% (by UAH0.51/cubic meter), to UAH5.24/cubic meter.
Most of Ukraine’s imports of Belarus petroleum products come from the Belarus’ largest refinery, in Mazyr​, on the Pripyat River, 250 km north of Kyiv. According to Argus Media, it appears that Mazyr workers will be on a 3-hour lunchtime strike this week. At Naftan refinery, near Belarus’ northern border with Lithuania, workers are on strike. The refinery which is owned by Belneftekhim, was already shut down for scheduled maintenance.
Thanks to a new business – oil transshipments from Odesa to Belarus -- Ukraine’s oil imports are up 142% for the first half of this year​, compared to January-June 2019, reports Ukrtransnafta. Yuzhne’s Black Sea oil terminal today, a tanker is unloading 85,000 of Azeri light, is destined for Belarus’ Mozyr oil refinery, via the Odesa-Brody pipeline. This is the sixth tanker load destined for Belarus to dock in Odesa this year. After fighting with Russia over oil prices, Belarus turned late last year to importing oil from Lithuania and Ukraine. Of the $265 million worth of oil that Ukraine imported during the first half of this year, the State Customs Service reports: 65% came from Azerbaijan, 18% from the US, and 17% from Libya.
European prices for natural gas would drop by about one quarter if the Nord Stream 2​ pipeline connecting Russia to Germany were completed​, the consulting firm Wood Mackenzie said in a report on Friday, ​Sputnik News reported. “If Nord Stream 2 remains unfinished, European benchmark TTF gas is expected to average about $4 permn British Thermal Units next year. But if the project can be completed as its backers hope early in 2021, then the
58​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com