Page 54 - UKRRptNov22

$655 per thousand cubic metres at the end of last week. Gas futures for October cost $1,436 at the end of trading on October 14 and were $1,648 in February.
State gas producer Ukrgazvydobuvannya set a record for drilling new wells. In September 2022, the drilling volume of new wells of the Ukrgazvydobuvannya’s drilling division, Ukrburgaz, reached a record high of 30,222 m. In September, drillers also set a record for daily penetration - 1,504 m. The company drew attention to the fact that they managed to achieve such results even though part of the company's deposits are still temporarily occupied or are located near the front line and are not operational. It is noted that during the war, drilling has become a key focus because new wells have the most significant effect in compensating for natural losses and increasing hydrocarbon production. Due to the achievements of the drillers, the company plans to increase hydrocarbon production next year.
Deliveries of Russian gas to Europe in transit through Ukraine in October remained the same at 42.4 mln cubic metres through the Sudzha gas distribution station, follows from the data on the website of the GTS (Gas Transmission System) Operator of Ukraine. This transit line through Ukraine remains the only route for Russian gas supplies to the countries of Western and Central Europe after the destruction at the Nord Stream.
The EU has already replaced two-thirds of its imported gas from the Russian Federation. The EU is ridding itself of its dependence on Russian gas faster than expected. In just eight months, European countries have found replacement options for two-thirds of the gas previously imported from Russia, said the president of the European Commission, Ursula von der Leyen. According to the EC president, when RePowerEU was first proposed in March, the EU was highly dependent on Russian gas. She also noted that diversification has cost the EU very dearly, so she suggested increasing investments in European energy generation, primarily in renewable energy sources. In 2021, Europe imported 150bn cubic metres of Russian gas. Imports from other countries replaced part of this gas, and usage will be reduced by about 50bn cubic metres. Currently, dozens of gas tankers have gathered near the EU terminals. There is so much liquefied gas that there is not enough capacity for import and regasification.
Ukraine agrees to terms on gas supply through the Baltic Pipe. Naftogaz of Ukraine has preliminary agreements in place for its gas supply through the Baltic Pipe gas pipeline from Norway to Poland. However, the company currently does not have the funds to purchase onebn cubic metres, said the chairman of the company's board, Yuriy Vitrenko. Vitrenko clarified that this amount of gas at current prices is worth $2B and noted that the special fund created for gas import, which was supposed to be filled, in particular, by international donors, is still empty. Vitrenko hopes that chances to replenish the fund will appear after the IMF’s decisions and the donor conference with the Germans at the end of October.
Ukraine and the Czech Republic will engage in hydrocarbon exploration. State company Ukrgazvydobuvannya and the Czech MND Group will work on hydrocarbon exploration in the western regions of Ukraine. The Ukrainian company reported that the companies signed the memorandum in the Prague office of MND. "We continue to attract international partners to increase Ukrainian gas reserves without waiting for the war's end. Given Russia’s use of
54 UKRAINE Country Report November 2022 www.intellinews.com