Page 63 - UKRRptSept23

9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Ukraine amasses over 12bn cubic meters of gas ahead of winter season. The Ukrainian presidential administration has admitted that the upcoming winter season will be more difficult than the previous one
EU gas reserves have reached an absolute record on August 31, and pipeline supplies from Russia continue at maximum capacity. Gas volumes in the EU have risen to their highest level ever and continue to grow, according to data from Gas Infrastructure Europe. The current inventory level has reached 92.65%, 12% higher than the average for these exact dates over the past five years. Several countries are still behind the 90% benchmark, which must be reached before the start of the withdrawal season. France, Romania, and last year's outsider Latvia are accumulating gas supplies. At the same time, European terminals for receiving LNG in July worked with an average 56% productivity; since the beginning of August, loading has been only 50%. Daily August LNG imports may be less than in 2021. As for the supply of Russian gas, it continues. According to The GTS Operator of Ukraine, the latest requests from Gazprom for transportation amount to 42.4 million cubic meters daily. This is the maximum technically possible throughput, considering all restrictions introduced by the Ukrainian side.
Kyiv is ready to continue the transit of Russian gas to the EU without contracts with the aggressor. As the Ambassador of Ukraine to Moldova, Marko Shevchenko, explained, transit after 2024 can be extended by agreement with importers. Ukraine will not initiate negotiations on extending the agreement on the transit of Russian gas after 2024 but is open to proposals from partner countries, the diplomat said. Therefore, the transit can continue if the interested countries conclude a contract with the Russian company on supply and the Ukrainian side on transit. For example, Ukraine can have a transit contract with Germany, Poland, and Moldova if local companies buy gas from Russia and transport it through Ukraine. Ukraine will not enter into a contract with Russia but will with, for example, the Republic of Moldova. Currently, the transit of Russian gas continues because Ukraine has obligations to consumers in Western-allied countries.
The commercial gas price in Ukraine has become more expensive than in the EU. According to industry media, the price of natural gas in the Ukrainian market has been rising since July, and today the price has exceeded the European price, according to industry experts. The average price for natural gas at the TTF European gas hub on Day Ahead terms in July was almost €30 per MWh, corresponding to the price in Ukraine. However, in August, the average price in Ukraine has risen to €33.4, while in Europe, it is €32.5 per MWh. It is noted that there are no definitive reasons for such a sharp increase in Ukrainian natural gas prices. Ukrainian gas storage facilities are more than 42% full, currently holding more than 13.5 billion cubic meters of gas. However, sellers with reserves of natural gas in underground storage are in no hurry to sell the resource on the market now. Some traders point out that there is a gas
63 UKRAINE Country Report September 2023 www.intellinews.com