Page 55 - UKRRptJan22

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Nord Stream -2 will not be launched in the first half of 2022. The German energy regulator's eagerly awaited decision on fully certifying the Nord Stream 2 gas pipeline won't come in the first half of next year, a setback for the Russian project that has fueled global political tensions. Pressure on the project has intensified in recent weeks considering diplomatic tensions between Moscow and western nations, mainly triggered by fears of a possible Russian attack on Ukraine. To get the certification, Nord Stream 2 had started setting up the subsidiary to comply with all rules and regulations, reported Reuters.
Gas prices in Europe have reached a historical high for the third time in a day on December 21. The rise in gas prices in Europe on the stock exchange on the evening of December 21 amounted to more than 27% per day. The quotations for blue fuel set the third historical record in 24 hours - $ 2,150 per thousand cubic meters. According to ICE Exchange, the rise in gas prices is against the backdrop of the onset of frost in Europe. In addition to this, Gazprom refused to increase pumping through Ukraine in January next year and did not book transit through the Yamal-Europe gas pipeline.
Storms and strong wind in Europe have brought down the gas price by 40% on December 26. The high winds boosted wind generation, and cut gas prices in Europe by a third from December 24 all-time high over the past two days. The contribution of wind generation to electricity generation in Europe rose to 13.8% on Thursday from 7.1%. Last week, the contribution of windmills to electricity generation in Europe averaged 13.7%. On December 26, gas trading ("day ahead" contract) on the TTF ended at $1,485 per thousand cubic meters after $1,997 on December 25 and a record $2,138 per thousand cubic meters on December 24.
Private gas producers are obliged to sell 20% of their gas on the stock exchange. The Cabinet of Ministers has obliged private gas production companies to sell 20% of their gas on the Ukrainian Energy Exchange by April 30, 2022. Thus, 20% of the volume of gas produced by private individuals was included in the list of products traded exclusively on organized commodity markets. However, this requirement does not apply to the state-owned Naftogaz of Ukraine and its subsidiaries, reported gov.ua
The EU and the US are working to expand a gas connector between Poland and Ukraine. This would turn Poland into a major gas source for Ukraine. Poland is doubling its LNG receiving capacity and plans to stop buying gas from Gazprom one year from now.
Ukraine has signed a gas agreement with Hungary. The GTS operator of Ukraine and the GTS operator of Hungary FGSZ have concluded an agreement providing for the supply of a guaranteed amount of natural gas in
55 UKRAINE Country Report January 2022 www.intellinews.com