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ammonia and nitrogen fertilisers in the first instance. Russia as a net gas exporter will always have a competitive advantage on the ammonia market owing to cheapness of initial feedstock. The share of Russia in the global market may grow to 14% (it was 9% in 2022), and ammonia exports in absolute terms may almost double from 17 to 31mn metric tonnes," experts said.
Italy has reduced its dependence on Russian gas to almost zero, Minister of the Environment and Energy Security Gilberto Pichetto Fratin told newspaper il Messaggero on August 18. The country imports pipeline gas from various sources, has raised the share of liquefied natural gas bought at sea terminals and the output of green energy, and expects to receive two thirds of energy from renewable sources by 2030, he said.
Due to full gas storage, EU gas prices are falling, and traders have switched to Ukrainian gas storage. Futures on the TTF hub in the Netherlands fell 1.7% to €29.97 per MWh (about $350 per thousand cubic metres), according to data from the ICE exchange. Bloomberg notes that sluggish demand after last year's energy crisis and high gas storage levels are helping to keep prices down. Gas storage facilities in the EU are more than 87% full, slightly less than the bloc's mandatory November target of 90%. Meanwhile, despite the war risks, European gas traders have started storing natural gas in Ukraine to take advantage of lower prices and available capacity. Czech EPH group told Reuters that its decision to use Ukrainian storage was also a sign of confidence in the country. In turn, Ukrtransgaz stated the positive dynamics of gas injection by foreign traders into Ukraine gas storage. Slovakia's state-owned SPP said it is considering using Ukrainian storage facilities, as Slovakian storage facilities are already 90% full.
Ukraine will not renew the contract for the transit of Russian gas to the EU after 2024. Ukraine has warned Austria that it does not plan to extend the gas transit contract, DW economic expert Andriy Gurkov said. He notes that the Ukrainian route mainly serves Austria, with some small gas volumes that ship to Hungary and Italy. Therefore, the Austrian OMV company has already reserved transit capacity to supply Norwegian gas and LNG and gas from Italian terminals. Moreover, the Austrian company decided to develop another gas mining field in the Romanian Black Sea territory. In December 2019, Naftogaz of Ukraine and the Operator of the GTS of Ukraine and Gazprom signed an agreement to transit Russian gas to Europe through Ukrainian territory beginning in 2020. According to this contract, the volume of transit in 2020 was 65bn cubic metres, and in 2021-2024, 40bn cubic metres.
RUSSIA Country Report September 2023 www.intellinews.com