Natural gas supplies to Ukraine from the EU in June 2021 amounted to 90.3 million cubic meters, which is 10.6 times more than in May (8.5 million cubic meters), the press service of Gas Transmission System Operator of Ukraine (GTSOU) has said.
According to its data, the entire volume of June imports was received by backhaul from Hungary.
At the same time, total supplies to the country in the first half of 2021 fell 12.4 times (by 7.405 billion cubic meters) compared to the same period last year, to 651 million cubic meters. In particular, in the mode of a customs warehouse for storage in the UGS facilities, the country received 97 million cubic meters of gas in the six months.
Net exports of natural gas from Ukraine to European countries in June amounted to 15 million cubic meters, re-export – 7 million cubic meters. In total, in January-June-2021, some 64 million cubic meters of gas were exported, 689 million cubic meters – re-exported from the customs warehouse.
“The unique ramified infrastructure of the Ukrainian GTS allows you to quickly and flexibly respond to fluctuations in demand and, if necessary, provide additional transit capacities to European partners,” Serhiy Makogon, the head of GTSOU, said.
At the same time, he stressed, in the absence of a long-term transit contract, the infrastructure of the Ukrainian gas transportation system will be optimized, and the European market will lose these maneuverable capacities, becoming dependent on the Gazprom monopoly.
“The threat of building bypass gas pipelines and monopolizing supply routes is a threat to all Europeans from the point of view of energy and economic security,” Makogon summed up.
Smart Energy in January-June 2021 reduced gas production by 0.2% (by 300,000 cubic meters) compared to the same period last year, to 199 million cubic meters, the press service of the group said.
In addition, the production of gas condensate by the companies of the group increased by 1.2%, to 17,800 tonnes, liquefied propane-butane – by 12.3%, to 5,100 tonnes.
According to the press service, despite the natural depletion of reservoir energy in the productive horizons of the fields developed by Smart Energy, the group continues to maintain production volumes at a stable level.
“We are keeping our production of natural gas stable, primarily due to our new wells in Poltava region. Taking into account this fact and positive dynamics of price for natural gas, we are planning to spud at least two more new wells in H2 this year,” Serhiy Hlazunov, the CEO of Smart Energy Group, said.
“In February the company spudded one more new development well, No. 29, at Svyrydivske field as well. The target depth is 5,450 meters. Currently the well has reached a depth of approximately 5,250 meters. Drilling operations are ahead of schedule. Subject to successful testing, production hook-up is now expected by the end of Q3, 2021,” the report says.
“Arkona Gas-Energy is getting ready to development of Svystunkivsko-Chervonolutske field (Poltava region). The company is completing supplementary prospecting and exploration as well as design works. During next two months it is spudding well No. 4. Start of 3D seismic is planned for Q4 this year as well,” the company said on its website.
“Preparations for upgrade works to the gas processing plant are in progress. The upgrade includes equipment modernization and increase to the liquids tank storage capacity. The works are scheduled to commence in Q4, 2021,” it said.
The European Bank for Reconstruction and Development (EBRD) will provide a EUR 10 million two-year committed local currency-denominated working capital loan to the Ukrainian electricity and gas supplier ERU Trading LLC.
As stated in a report of the bank, the decision was made by the board of directors on June 9.
“EBRD funds will be used to support growing gas trading operations of ERU Trading in order to secure low cost gas from EU during summer season and store it in Ukrainian gas storages with further sale in Ukraine,” the EBRD said.
According to EBRD, the proposed project supports a private, independent trader in competing with the dominant player, Naftogaz, in an increasingly liberalised market, and facilitates increased liquidity and competition on the private energy exchange UEEX following the MoU signed by the EBRD in July 2020.
The EBRD will become the first international financial institution in the existing loan portfolio of ERU Trading.
ERU Trading LLC, established in 2016, belongs to Yaroslav Mudry and Dale Perry. According to the information on the company’s website, gas supplies to the population are an important part of its strategy. In February of this year, the company received the license from the energy regulator.
EBRD, ELECTRICITY, GAS, LOAN
Metallurgical enterprises of Ukraine in January-May this year increased consumption of natural gas by 8.8% compared to the same period last year, to about 800 million cubic meters.
According to an information note of the Ukrmetalurgprom association, electricity consumption by metallurgical enterprises during this period amounted to about 4.74 billion kWh (104.2% compared to January-May 2020).
As reported, metallurgical enterprises of Ukraine in 2020 increased consumption of natural gas by 4.4% compared to the previous year, to 1.88 billion cubic meters, and electricity consumption by metallurgical enterprises during this period amounted to about 11.1 billion kWh (99.4% versus 2019).
Transit of gas through Ukraine should remain even after the construction of Nord Stream 2, German Foreign Minister Heiko Maas said.
Maas told journalists in Berlin on Wednesday that Chancellor Angela Merkel told Russian President Vladimir Putin long ago that for Germany, the completion of the construction of Nord Stream 2 is associated with the need for further gas transit through Ukraine.
According to him, nothing will change in Germany’s position in this regard.
Ukraine may return to the idea of attracting European and American companies to manage its gas transmission system (GTS), Advisor to the Minister of Energy of Ukraine Lana Zerkal has said, expressing this opinion on the air of ICTV TV channel.
“This may be the same idea that was in 2019 for a joint consortium involving European and American companies to use the Ukrainian pipeline,” the ministry’s press service said, citing her.
According to Zerkal, this step will contribute to the lifting of Gazprom’s export monopoly on gas sales, since European consumers will have access to the GTS, deciding which gas supply route is more profitable for them.
“This is a geopolitical problem and it must be resolved at the geopolitical level using mechanisms inherent in geopolitics. Nord Stream 2 has become a stumbling block for the whole of Europe and for transatlantic relations. This is not only a question of Ukraine. This gas pipe has become an issue and a subject of international negotiations at the highest level,” Zerkal said.
She recalled that with the help of Ukraine’s partners in the European Union, it was already possible to amend the EU Third Gas Directive, which provides for its application to Nord Stream 2.
“It is very important that it be applied in full, because it will make it possible to balance market relations if Nord Stream 2 is nevertheless completed, certified and launched,” she said.
According to her, the EU has tools that can secure Ukraine from the use of Nord Stream 2 in full, leaving the Ukrainian GTS without transit.
“But for this we need to work with the European Commission, as well as with other countries that are also not interested in the launch of Nord Stream 2,” Zerkal said.
