Page 32 - BNE_magazine_05_2019

32 I Cover story bne May 2019
Naftogaz triples gas imports, races to build up reserves before Russia’s Gazprom cuts off supplies
Ukraine’s national gas company Naftogaz believes that Russia will cut off its gas supplies completely on January 1, 2020 and is rushing to build up reserves as high as possible so that Ukraine can get through the freezing winter.
Last year Ukraine accumulated 17.2 bcm of gas in its underground storage facilities – the highest level in the last six years – but it is on course to beat that record this year.
Natural gas stocks in Ukraine's underground storage facilities (USFs) have increased by 7.8%, or by 685mn cubic meters, to 9.439bn cubic meters (bcm) since April 5, when Ukraine starts loading up reserves for the coming winter.
As of April 30, 2019, gas reserves in the country's USFs were up 19% up from 7.93 bcm reported as of April 30, 2018, and the USFs are already 30% full, according to the state-run owned gas transport system operator Ukrtransgaz.
Ukraine consumes about 35bcm of gas a year, of which some 20bcm is produced domestically and the rest is imported. However, the bulk of Soviet-era USFs were built in Ukraine that can hold up to 31bcm of gas.
What Naftogaz is afraid of is if Russia stops all transit deliver-
Gas balances in Ukrainian underground storages
ies via Ukraine to its European customers there may be
a shortage of gas in Europe and not only will imports from Russia cease, but from Ukraine’s western partners as well.
In preparation Ukraine significantly boosted imports of natural gas from Europe starting on May 1, 2019, loading the Slovakian pipeline by 75.5% of the existing capacity compared with 22.4% of loading during April 2019.
According to updated data of the Slovak operator Eustream, gas supply to Ukraine on May 1 was 32.1mn cubic meters, which is 3.4 times higher than the average daily imports by the country from Slovakia in April (9.5mn cubic meters).
The data of JSC Ukrtransgaz confirm the reservation on May 1, 2019, 32.2mn cubic meters of the Slovakia/Ukraine capacity out of the existing 42.5mn cubic meters of the capacity. On May 1, 2019, the capacities for the supply of 45.7mn cubic meters of gas to Ukraine were reserved (Slo- vakia – 32.187mn cubic meters, Hungary – 9.267mn cubic meters, and Poland – 4.269mn cubic meters) of the existing 66mn cubic meters of the capacities on the western border. The average daily gas imports by Ukraine in May 2018 amounted to 36.5mn cubic meters, in May 2017 – 38.4mn cubic meters, and in May 2016 – 3.1mn cubic meters.
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