Business news from Ukraine

THE OPERATOR OF GAS TRANSMISSION SYSTEM OF UKRAINE ANNOUNCED RISKS OF LOSING THIRD OF TRANSIT TO EUROPE DUE TO RUSSIAN INTERFERENCE IN OPERATION OF COMPRESSOR STATION

The operator of the GTS of Ukraine (OGTSU) reports on gross interference by representatives of Russia and illegal armed groups controlled by them, the so-called. “LNR” in the operational work and technological processes of gas transportation through the compressor station (CS) “Novopskov” in the Luhansk region.
“The Novopskov CS is an important facility for organizing gas transportation to consumers in the Donetsk and Luhansk regions. Almost a third of the transit to Europe from the Sokhranivka gas measuring station (GIS) also passes through this station,” the OGTSU said on Friday.
According to it, a number of actions by the occupiers were recorded, providing for changes in the operation of communication equipment and technological modes, which in fact could lead to the loss of operational control over the CS equipment.
“This will lead to significant risks to the integrity of the gas transmission system, the stability of gas transportation regimes, and as a result, the impossibility of transporting gas through the CS, in particular, under a transit contract,” the GTS Operator of Ukraine explained.
The Ukrainian company called on the representatives of the aggressor to refrain from further pressure on its employees and interference in the work of the Constitutional Court.
“Otherwise, in case of loss of operational control, the OGTSU will be forced to stop the operation of this facility in order to maintain the integrity and safe operation of the GTS. Stopping the Novopskov CS means stopping transit through the Sokhranovka GIS. Responsibility for the consequences lies with the Russian Federation,” – emphasized in the message.
On April 6, OGTSU Director General Sergey Makogon said that since the beginning of the war unleashed by Russia, three main gas pipelines have been damaged, four compressor stations have been seized by the invaders, two gas distribution stations (GDS) have been destroyed, and another 48 GDS have been stopped.

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UKRAINE RESUMED GAS RE-EXPORT

The Ministry of Energy has resumed the re-export of natural gas from Ukraine by amending order No. 99 dated March 3, 2022, by which re-export was previously stopped due to Russian aggression, Ukrtransgaz JSC, the operator of gas storage facilities in Ukraine, said on Tuesday.
“The changes apply to gas that will be imported into Ukraine from April 3, 2022 for further storage in underground gas storages in the “customs warehouse” mode, including transportation at a special short-haul rate,” the company informed.
At the same time, as Ukrtransgaz explained, gas imported into Ukraine before April 3, 2022 is still subject to a ban on re-export, but it can be cleared through customs and sold in the country.
“We welcome the decision to resume the re-export of natural gas from Ukraine. The restoration of re-export operations is an important signal for our foreign customers of services, who currently operate in 27 countries. We hope that in the new gas injection season they will consider Ukrainian gas storage facilities as a platform for storing natural gas.” – said Serhiy Pereloma, Acting General Director of Ukrtransgaz.

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MINISTER OF FOREIGN AFFAIRS OF UKRAINE THANKS GERMANY FOR REFUSING TO PAY FOR GAS IN RUBLES

Minister of Foreign Affairs of Ukraine Dmytro Kuleba discussed with German Foreign Minister Annalena Baerbock the issues of toughening sanctions against the Russian Federation and strengthening the defense capability of Ukraine, and also thanked the German side for refusing to a demand of the Russian Federation to pay for energy in Russian currency.
“I spoke with Annalena Baerbock and thanked Germany for refusing to pay for Russian natural gas exports in rubles. Emphasized the need to impose new stiff sanctions on Russia. Informed on the frontline developments. The need to further strengthen Ukraine’s defense capabilities is urgent,” Kuleba wrote on Twitter on Saturday.

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GAS TRANSMISSION SYSTEM OPERATOR OF UKRAINE BEGINS TO RECEIVE AID FROM EUROPE

Gas Transmission System Operator of Ukraine (GTSOU) has started accepting the first cargoes with technology and humanitarian aid from European colleagues, the company’s press service reported on Saturday.
According to the press service, the Belgian operator Fluxys provided equipment for centering during pipe welding, the Bulgarian Bulgartransgaz EAD – six tonnes of welding electrodes now in short supply in Ukraine for the repair of main pipelines, the German ONTRAS – humanitarian goods (mats, sleeping bags, etc.).
In addition, a scheme has been agreed with the German operator OGE (Open Grid Europe) for the emergency delivery of special equipment and repair kits for fireless tapping and connection of bypasses in case of damage.
Also, cargoes from six more GTS operators are already being formed for shipment.
In general, since the beginning of the Russian military aggression, GTSOU has received proposals for technical assistance from 15 GTS operators from 13 countries (Poland, Slovakia, Hungary, Lithuania, the Czech Republic, Germany, Belgium, Bulgaria, Greece, Spain, Italy, France, the UK).
“We are thankful to our international colleagues for the support, as well as the Ministry of Energy of Ukraine, USAID for assistance in obtaining critical materials. Thanks to all of you, GTSOU continues to supply gas to Ukrainian consumers,” the company said.
The length of the main gas pipelines managed by GTSOU is 33,079 km, the number of compressor stations is 57, and the number of gas distribution stations is 1,395.

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RUSSIAN GAZPROM STILL PUMPING GAS VIA UKRAINE

Pumping capacity via the Ukrainian gas-transit corridor has remained at yesterday’s level for European consumers.
“Gazprom is supplying Russian gas for transit via Ukraine as usual as per the bookings of European consumers at 94.6 million cubic meters on March 17,” Gazprom spokesman Sergei Kupriyanov told reporters.
According to the data of the Gas Transmission System (GTS) Operator of Ukraine, the nomination for March 17 is 95 million cubic meters, and bookings for March 16 totaled 94.5 million cubic meters.
The Yamal-Europe gas pipeline, which pumps gas through Belarus and Poland to Germany, switched to reverse mode on Tuesday and will continue pumping gas from Germany to Poland on Wednesday. Gazprom did not book any capacity along the Polish section of the pipeline either for the regular session or for the additional night session. Gas supplies from Germany to Poland, meaning off-take of additional volumes from the main European hubs, are another component of the current high prices in the EU.
Electricity generation from renewable sources is declining once again this week. The contribution of wind generation to the energy balance of Europe averaged 17% for the week of March 7 to 13; on Monday, and it has averaged 12% over the three days of this week, according to data from the WindEurope association. The weather forecast for the next few days should be calm.

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RUSSIAN GAZPROM CONTINUING GAS DELIVERY FOR TRANSIT VIA UKRAINE TO EUROPE

Capacity utilization of Ukraine’s transit corridor on Friday remains at the same high level, in line with the long-term contract volumes of 40 billion cubic meters per year or 109 million cubic meters per day.
European buyers have increased nominations for Gazprom’s gas after prices soared due to the imposition of sanctions on Russia. Gas prices at the TTF hub were $1,383 per thousand cubic meters on Friday morning.
“Gazprom is supplying Russian gas for transit via Ukraine as scheduled in accordance with the requests of European consumers – 109.5 mcm on March 11,” the company’s official spokesperson Sergey Kupriyanov told reporters.
As confirmed by data from the Ukrainian GTS Operator, the nomination for March 11 is 109.4 mcm, while that for March 10 was also 109.4 mcm.

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