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the direction Hungary-Ukraine from January 1, 2022. According to General Director of GTS Ukraine Operator Serhiy Makogon, the most crucial thing in this agreement is creating opportunities for domestic traders to access gas from the LNG terminal on the island of Krk (Croatia) diversify sources of gas supply to Ukraine. “This is an important step to increase security and new opportunities for traders from Ukraine and Europe”, said Makogon on his Facebook page.
Ukraine has started increasing gas production. Ukrgazvydobuvannya, which is a subsidiary of Naftogaz, has launched the first stage of gas compression of the Chervonodonetsk Compressor Station (CHDKS) in the Kharkiv region. The new set of equipment increases production by about 250,000 cubic meters of gas per day, reported Naftogaz. The CHDKS will obtain an additional 100 million cubic meters of gas at the country's largest Shebelinskoye field in 2022. “This is an important factor in strengthening Ukraine's energy independence and reliable supply of gas to Ukrainian consumers,” said the CEO of Naftogaz Yuriy Vitrenko.
Gazprom announced it has fulfilled its obligations under the transit agreement with Ukraine on December 15, having transported 40bcm of gas in 2021, which corresponds to the volume under the agreement, according to Kommersant, referring to a statement from the company.
Europe will create its own strategic gas reserves in order to hedge against future gas shortages, European Energy Commissioner Kadri Simson said at a press conference on December 3. The EU Council made the decision at a meeting at the level of energy ministers, reports Neft i Kapital. Simson stated that the EC is working on a package of proposals to regulate the natural gas and hydrogen markets. She also added that, despite the extremely high prices of natural gas in 2021, hub-linked gas prices will deliver gas more cheaply to the Continent over time than long-term oil-linked prices.
On December 9, the National Commission for Energy and Utilities Regulation (NKREKP) made a decision to transfer the clients of the last resort supplier to the base tariff of Naftogaz of Ukraine. This will allow 350 thousand households to pay 7.96 hryvnia per cubic meter. According to NKREKU, today the supplier of the "last resort" provides natural gas to more than 347 thousand household consumers from different regions of Ukraine and now there is a tendency of a rapid rise in prices for natural gas. Earlier, the Naftogaz Ukrainy Group of Companies offered to automatically transfer all customers to the basic annual tariff (7.96 hryvnias). Such a solution for residential customers who did not choose a market supplier and receive gas from a supplier of "last resort" became possible thanks to the adoption of a law on the introduction of metering and calculations on the volume of gas in energy units on the natural gas market.
56 UKRAINE Country Report January 2022 www.intellinews.com