Hungary is interested in the continuation of natural gas transit across Ukraine, Hungarian Foreign Minister Peter Szijjarto said.
“I don’t understand why not ship gas via the southeastern route [after the launch of the Nord Stream 2 gas pipeline]. Hungary views this matter from a strategic standpoint, because the absence of transit across Ukraine would cause damage to our country,” Szijjarto said at a press conference following negotiations with Russian Foreign Minister Sergei Lavrov.
Each country should make decisions on sources and routes of energy supply primarily based on its own national interests,” he said.
Germany wants the agreement on the transit of Russian gas through Ukraine to be prolonged as soon as possible, German Chancellor Angela Merkel said.
“Our cooperation in the sphere of energy is very important. It already exists, but it will continue, also because there will be further traffic through the Ukrainian gas transport system from Russia to Europe. I have spoken about that with the Russian president [during the visit to Moscow on August 20] that we want to prolong the agreement, which is in effect until 2024, as soon as possible. We will also speak about that in Europe and with the companies that are associated with that here,” Merkel said at a press conference with Ukrainian President Volodymyr Zelensky in Kyiv on Sunday.
Germany will also have its own special envoy on transit issues, Merkel said.
“We agree with the Americans that gas cannot be used as a weapon. And therefore, we will be holding these talks with the Americans,” Merkel said.
“It has to be said that Nord Stream 2 is not a German-Russian project, there are companies from Germany, the Netherlands, and France there. And therefore it’s a European-Russian project, it is subject to European law, it is subject to the law of the Third Energy Package because we are not fully free in regulation, but should cite exactly that, therefore we didn’t hold these talks from the German side, but we supported that on the European side,” she said.
Merkel said Ukraine needs to develop in the direction of climate neutrality.
“We will export gas from Russia to Europe after 2024, and it’s important here that Ukraine should stay a transit country, and it’s important that this agreement should stay, and then step by step – it’s very important to Russia – Ukraine should also develop in the direction of climate neutrality. Germany should achieve that by 2045. That is why gas consumption will decrease, and then gas will not go on Nord Stream or via Ukraine’s gas transport system, and then Ukraine should be ready for what can be done then,” Merkel said.
One of the possibilities is partnership in the sphere of green energy, namely on hydrogen, she said.
“But it’s not a problem that can replace transit via the Ukrainian gas transport system from 2024. However, due to the renewable sources of energy, which can be expanded in Ukraine, it is possible to help here to produce green hydrogen by means of hydrolysis, by means of green energy from renewable sources of energy and use it,” the chancellor said.
DTEK Naftogaz produced more than 1.1 billion cubic meters of gas in January-July, which is more than 10% more year-over-year, the company said in a press release on Friday.
“The increase in production was made possible due to the implementation of the drilling program in 2020, as well as the completion of drilling of two wells in 2021,” the company said.
In addition, DTEK Naftogaz in 2021 carried out overhaul and stimulation operations, as well as process operations at more than 20 wells of the operating stock, the company said.
“A number of technologies that were applied at the same time were used by the company for the first time in Ukraine. DTEK’s oil and gas business remains a technological leader and a driver for the development of the oil and gas industry in Ukraine,” DTEK Oil & Gas said.
According to the company, by the end of 2021 it is planned to complete the drilling of two more wells and put into operation a modular refrigeration unit at Machukhske field. This will allow reaching a new record production rate in 2021 of 2 billion cubic meters of gas.
“Due to sustainable process development and systemic investments, we ensure the growth of gas production from year to year […]. The use of fiscal stimulating instruments by the government, as well as a stable and transparent regulatory environment, are extremely important for the further effective development of the industry,” CEO of DTEK Oil & Gas Ihor Schurov said in the press release.
By the end of 2020, DTEK Naftogaz increased natural gas production by 10.8% (by 180,000 million cubic meters) compared to 2019, to 1.84 billion cubic meters.
DTEK, GAS, OIL, PRODUCTION
Over 15 years, NJSC Naftogaz Ukrainy has invested about $580 million in the production of concessional oil and gas fields of hydrocarbons in Egypt, said First Deputy Chairman of the Board of the company Serhiy Pereloma.
“We plan to develop this area in the future and, accordingly, to increase the volume of hydrocarbon production,” he wrote on his Facebook page following a meeting with Ambassador of the Republic Ayman Elgammal.
According to him, the joint company of the NJSC and the Egyptian General Petroleum Corporation (EGPC) – Petrosannan Company – were able to significantly increase the production of hydrocarbons in the Alam El Shawish East Western Desert this year. In particular, work has begun to increase hydrocarbon recovery by flooding an oil reservoir of one of the main fields, an intensive well workover campaign has been carried out, and significant results have been achieved during hydraulic fracturing operations.
“We plan to expand this successful experience. We are looking for ways not only to increase oil and gas production, but also new opportunities for their further transportation,” Pereloma said.
He also said that the Petrosannan Company has provided the Egyptian Coptic Church in Asyut governorate with geological data that will help drill new wells to supply the farms with fresh water.
Ukrgazvydobuvannia in January-July 2021 reduced gross production of natural gas by 5.2% (by 437 million cubic meters) compared to the same period in 2020, to 7.932 billion cubic meters, the press service of the company said.
According to its data, gross production for the seven months decreased by 5.1% (by 406 million cubic meters) compared to January-July 2020, to 7.493 billion cubic meters.
Underfulfillment of the production plan is 125 million cubic meters and 51 million cubic meters respectively
In July 2021, gross gas production decreased by 4.8% (by 57.5 million cubic meters) compared to July 2020, to 1.144 billion cubic meters, marketable – by 4.5% (by 50.8 million cubic meters), to 1.088 billion cubic meters.
To stabilize production indicators during January-July 2021, the company commissioned 25 new wells, carried out 80 well workovers, performed 321 coiled tubing operations, 71 hydraulic fracturing operations, carried out nine sidetracking operations, equipped a remote monitoring system for 197 high-production wells.
As reported, Ukrgazvydobuvannia, 100% of which belongs to NJSC Naftogaz Ukrainy, in 2020 reduced production of marketable gas by 1.2% (by 170 million cubic meters) compared to 2019, to 13.45 billion cubic meters, and the company’s gross production amounted to 14.23 billion cubic meters.
Transit of natural gas through the gas transmission system (GTS) of Ukraine in January-July 2021 amounted to 25.616 billion cubic meters, which is 14.1% less than in the same period in 2020 (29.82 billion cubic meters), according to the data of Gas Transmission System Operator of Ukraine (GTSOU).
In particular, in January, transit amounted to 3.863 billion cubic meters (124.6 million cubic meters per day), in February – 2.907 billion cubic meters (103.8 million cubic meters per day), in March – 3.694 billion cubic meters (119.2 million cubic meters per day), in April – 3.718 billion cubic meters (123.9 million cubic meters per day), in May – 3.86 billion cubic meters (124.5 million cubic meters per day), in June – 3.723 billion cubic meters (124.1 million cubic meters per day), in July – 3.851 billion cubic meters (124.2 million cubic meters per day).
According to the press service of the company, in particular, 23.3 billion cubic meters of gas were transported by transit in the western directions (Slovakia – 15.8 billion cubic meters, Hungary – 5.3 billion cubic meters, Poland – 2.2 billion cubic meters), in the south – 2.3 billion cubic meters (Moldova – 1.9 billion cubic meters, Romania – 400 million cubic meters).
GTSOU notes that in July Gazprom used all previously booked capacities, but showed no interest in additional transit capacities, despite the record growth in prices in European gas markets, as well as low volumes in European storage facilities and the planned stop of Yamal-Europe routes and Nord Stream 1.
According to GTSOU Director General Serhiy Makogon, Gazprom is emptying its UGS facilities in Europe in order to compensate Europeans for the lost gas volumes, and at the same time not to increase additional transit through Ukraine.
