Page 62 - UKRRptSept21

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Opening of Nord Stream 2 blocked? The Nord Stream 2 gas pipeline is not exempt from EU rules requiring owners of pipelines to be different from the suppliers of the gas that flows in them to ensure fair competition, the Duesseldorf Higher Regional Court ruled on August 25. It has rejected a challenge from the operators of the Gazprom-backed (project to carry gas who had argued the rules were discriminatory. The operating consortium had sought a review of a decision in May 2020 by the German energy regulator, the Bundesnetzagentur, declining to grant the project an exemption. This development is likely to delay the opening of the Russo-German pipeline which is almost compete. Under EU regulations, unless a further appeal succeeds, the company transporting the gas must auction its capacity to third parties.
Russia-Hungary agree on a gas supply deal bypassing Ukraine effective from October 1. Hungary will annually receive from Russia 4.5bn cubic meters of gas: 3.5bn via Serbia through the Turkish Stream gas pipeline and its overland extension, and 1bn cubic meters via Austria. The new contract is for 15 years with the possibility of terms renewal in 10 years. Most of the volume will through a new interconnector on the country's border with Serbia. Until now, most of Hungary’s gas import have been from Russia, supplied through Ukraine.
Ukraine’s state-owned gas company has the minimum legally allowed amount of gas in storage ahead of the winter heating season, the company said in a press release on August 2.
Following an especially cold winter and an unusually hot summer demand for gas used to generate power has been high and lead to a drain on reserves that has seen storage of gas fall to multiyear lows.
Ukraine has 17bn cubic meters of natural gas into its underground gas storage facilities, Naftogaz said, at a time when Russia’s Gazprom is sending only its contractually agreed gas to Europe. Prices for gas have rocketed four fold to over $400 per thousand cubic meters, a price more typical of the winter than the summer.
“According to our plan, the amount of gas stored will be even higher,” said Yuriy Vitrenko, head of Naftogaz.
The amount of gas stored by Naftogaz as of Aug. 1 exceeded the total reserves for the 2017-2018 heating season, which stood at 16.8bn cubic meters.
The next year’s heating season, Ukraine was able to store 17.1bn cubic meters.
During the 2020-2021 heating season, Ukraine stored a record 28.3bn cubic
62 UKRAINE Country Report September 2021 www.intellinews.com