Page 7 - FSUOGM Week 02 2023

FSUOGM COMMENTARY FSUOGM

(GIE), gas outflow from UGS facilities in EU the amount confirmed by the Ukrainian side via
countries on January 7 amounted to 122 mln the Sudzha gas pumping station, [amounting to]
cubic meters (the lowest figure for the entire 35.5 mln cubic meters on January 9. The appli-
duration of GIE’s observations since 2011), while cation for deliveries through Sokhanovka was
the injection volume of 112 mln cubic meters. rejected," the company’s representative said. The
Although Europe's gas injection into storage day before, the pumping volume also reached
facilities has fallen from its record rates of last 35.5 mln cubic meters.
month and is currently below the withdrawal The Kremlin needed a cold winter so that
volumes, it still has set multiple daily records for Europe would burn through its reserves fast with
January in the second half of last week. few options to replenish them. Instead Europe
The heating season in Europe started on has been reporting one of the warmest winters
November 14, and EU countries have withdrawn on record with all-time highs in several cities.
17.21 bln cubic meters of gas from storage facil- Even Russia reported the second warmest win-
ities since then. At the same time, the total gas ter on record and an average temperature of only
removal from UGS facilities on the 56th day -1C for the whole of 2022. The only warmer win-
since they reached their record filling volumes is ter on record was in 2020 when for the first time
already 8% lower than the five-year average for ever Russia reported a positive average annual
that day. temperature for the year of +1C.
UGS facilities in Europe are now 83.18% full, The warm weather means demand for gas
which is 16.2 p.p. higher than the 5-year aver- has been low and the storage tanks are not only
age, containing 90.03 bln cubic meters of gas. unusually full for this time of year, but Germany
Gazprom cautioned, however, that even near has actually been adding to the amount of gas
maximum gas stocks at UGS facilities in large in storage in December and January thanks to
European countries do not ensure a reliable pas- ongoing LNG imports and after a cold snap in
sage through the fall-winter period. Because of the run up to Christmas came to an abrupt end,
changes in logistics and gas supply sources, the which is unheard of. (chart) In December, the
winter demand on UGS facilities in Europe will average temperature in Berlin rose from -10C
be greater than in prior years. to +16C, a 25C difference in the space of a few
Meanwhile, Gazprom supplied gas to Europe weeks.
through Ukraine in the volume of 35.5 mln cubic While EU tanks were 83% full as of Janu-
meters per day via the Sudzha gas pumping ary 6, Germany’s tank capacity utilisation had
station on January 9. The application for deliv- climbed to 90% as of the same day, according to
eries through Sokhanovka was rejected by the Gas Infrastructure Europe (GIE) data. The price
Ukrainian side. "Gazprom is supplying Russian of gas has tracked the rising temperatures and
gas for transit through the territory of Ukraine in falling free storage capacity down.

Week 02 11•January•2023 www. NEWSBASE .com P7