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Naftogaz CEO: Oil refining completely stopped in Ukraine. Yuriy Vitrenko, head of Ukraine's state-owned oil and gas monopolist Naftogaz, stated that the entire oil refining industry of Ukraine is not working due to targeted Russian strikes.
Naftogaz is rushing to supply oil products to fix the fuel shortage in Ukraine. Ukraine National oil and gas company Naftogaz is working to eliminate the deficit that arose in the petroleum products market. For the third month in a row, the company is increasing the volume of fuel deliveries, on average, by 2.5 times every month, said the CEO of Naftogaz, Yuriy Vitrenko. The head of the company explained that Naftogaz had the opportunity to contract tens of times larger volumes, however, their import was hampered by logistical limitations in their delivery from large ports in Europe. Vitrenko added, though, that currently positive fuel supply dynamics in the Ukrainian market are observed.
Ukraine can strengthen EU and regional energy security for the upcoming winter. According to the GTS operator of Ukraine, there are a few main possible mechanisms:
● Ukraine can contribute to regional supply security by transporting gas over short distances between CEE countries, integrating into the renewable gas industry, and providing access to gas storage facilities.
● Ukraine's underground storage (UGS) system can stockpile more than 10 billion cubic meters of gas from the EU. The new regulation on gas storage by EU countries mandates filling gas storage facilities by 80% this year and 90% next year. Ukraine is a member of the energy community and, accordingly, can become a full participant in creating and maintaining a gas insurance reserve for the EU.
● The GTS Operator and USG Operator are joining forces to attract international gas traders.
● The OGTSU continues to work on the possibility of transporting gas to Ukraine from LNG terminals in Lithuania and Poland, as well as through the Trans-Balkan Corridor from Greece and Turkey.
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.
The EU has imported more gas by sea from the US than through pipelines from Russia. In June 2022, the EU received more natural gas by sea from the United States than through pipelines from Russia for the first time, announced the International Energy Agency. IEA executive, Fatih Berol, added that this trend signals the need for the EU to reduce consumption and prepare for a brutal winter. Last week, The European Commission stated that they expect severe interruptions in the supply of Russian gas and will intensify preparations for such scenarios. The German government admits that Russia
52 UKRAINE Country Report XXXX 2018 www.intellinews.com