Page 10 - FSUOGM Week 04 2023

FSUOGM PIPELINES & TRANSPORT FSUOGM

Russian gas flow through Ukraine

hits all-time low

RUSSIA RUSSIAN gas transit through Ukraine dropped Gazprom might continue to reduce gas flows, in
by over 20% to a historic low, Ukraine Business an interview with bne IntelliNews. He claimed
Mild weather has been News reported on January 20. Russia’s goal is to “put pressure on political lead-
a key factor. Gas transit began to decrease again on Janu- ers, in order to [lift] the sanctions and decrease
ary 19, following a major decline on January 4, support for Ukraine.”
when gas transit via the Gas Transmission Sys- Trouble initially arose when Russian troops
tem Operator of Ukraine (GTSOU) dropped occupied the Sokhranivka gas metering station
from 41mn cubic metres to 38.4 mcm per day. (GMS) at the start of the full-scale invasion. The
It fell by a further 20%, according to the former GTSOU had installed a fully insulated mould so
head of the GTSOU, Serhii Makogon. that the transit pipeline was able to deliver all the
This is due to Western traders getting over gas to Ukrainian-controlled territories without
the initial fear in the lead up to winter and los- any leaks. However, Makogon received infor-
ing interest in importing gas at any price fol- mation that Russia was intervening in the oper-
lowing mild weather. Gas prices fell below $600 ations and had redirected part of the flow to the
per thousand cubic metres, resulting in traders Russian-controlled self-proclaimed ‘Luhansk
refusing to purchase additional volumes. People’s Republic.’
Moreover, Europe is looking towards liquid The GTSOU was forced to declare force
natural gas (LNG) from the USA as a viable alter- majeure and instead asked Gazprom to trans-
native. In the first half of 2022, the US became fer gas flows free of charge to Ukraine’s north-
the world's largest LNG supplier, with 71% of its ern route, Sudzha, which has the capacity to
exports going to the EU and the UK. The major transport 244 mcm per day. Despite having
US terminal, the Texas LNG Freeport terminal, transferred the flow to the northern pipeline in
responsible for 20% of LNG exports, is due to October 2020 due to maintenance work, Gaz-
resume operations soon following an explosion prom claimed it wasn’t technically possible this
in the summer. time, which Makogon believes is not true.
Moscow has repeatedly reduced gas flow Instead, Gazprom closed the valve, halting
since the start of Russia’s full-scale invasion, gas flow through Sokhranivka. In response,
even suspending flows through Nord Stream GTSOU is in the process of taking Russia to
1 in September. Shortly after the suspension, court to claim for the losses caused by Russia’s
Makogon warned that Russian energy giant damage to infrastructure and losses to gas. ™

P10 www. NEWSBASE .com Week 04 25•January•2023