Page 51 - UKRRptJul22

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
EU gas prices have reached $1,800 per thousand cubic meters. Gas prices in Europe's central hub have crossed the $1,800 per thousand cubic meters mark as worker strikes in Norway threaten supplies from the country, reported the London ICE exchange. The last time such quotations were observed was almost four months ago. On Monday, quotes for August contracts reached €160 per MWh or $1,771.2 per thousand cubic meters. Bloomberg reported the increases result from the planned strikes in Norway, due to which it is planned to close three fields, and actions planned for the next day will lead to the stoppage of three more projects. Due to the reduction in Gazprom's gas supplies to European countries, the region has become even more dependent on supplies from Norway.
Gas transit through Ukraine falls to a 30-year low. In June, the volume through the Ukrainian gas transit system reached its lowest level since 1991 and amounted to only 1.25 billion cubic meters. In May 2022, the volume of transit through Ukraine fell by 37% compared to June of the previous year. Gazprom used only 38% of the reserved capacities under its long-term contract. Gazprom continues not to use the paid, reserved capacity at the Suzh entry point, which is 77.2 million cubic meters per day. The Russian company did not take an opportunity to transfer gas using Sokhranovka GIS capacities and did not participate in capacity reservation auctions, said the Gas Transit Operator of Ukraine.
Ukraine has created a new plan for developing gas storage facilities through 2031. The National Commission for State Regulation in the Energy Sector has approved the Gas Storage Development Plan for 2022-2031 with a total financing amount of UAH 14.4B ($500M), announced Naftogaz. It is noted that UAH 8.2B of these funds will be invested in the construction of underground gas storage (UGS) facilities and UAH 4.9B in infrastructure facilities and in the reconstruction of UGS technological equipment. Also, a portion of the funds will be directed to several capital expenditures necessary for complete UGS operations: the purchase of specialized vehicles and machinery, as well as production and telecommunication equipment.
Baza: Explosions inside Russia damage 'Druzhba' oil pipeline valve. Three explosions were heard on June 11, near Gulevka in Russia’s Bryansk region, damaging parts of the pipeline’s valve but not the pipeline itself, Baza reported quoting Russian state-controlled media. Earlier, “Druzhba” was excluded from the sixth round of sanctions imposed on Russia by the EU.
51 UKRAINE Country Report XXXX 2018 www.intellinews.com