Business news from Ukraine

UKRAINE’S METALLURGICAL ENTERPRISES REDUCE GAS AND ELECTRICITY CONSUMPTION

Metallurgical enterprises of Ukraine reduced the consumption of natural gas by 1% in January-September this year compared to the same period last year, which accounted for 1.39 billion cubic meters.
According to the information from the Ukrmetalurgprom association, electricity consumption by metallurgical enterprises amounted to about 8.22 billion kWh for this period (95% compared to January-September in 2019).
As reported, Ukrainian metallurgical enterprises reduced consumption of natural gas by 2% in 2019 compared to 2018, which accounted for 1.8 billion cubic meters. Electricity consumption by metallurgical enterprises amounted to about 11.2 billion kWh in 2019 (95% compared to 2018).
In 2018, metallurgical enterprises, including those in the temporarily uncontrolled territory reduced consumption of natural gas by 4% compared to 2017, but increased it by 4% without the uncontrolled territory, which accounted for 1.840 billion cubic meters. Electricity consumption by metallurgical enterprises amounted to 11.76 billion kWh in 2018 (102% of the consumption in 2017 with uncontrolled territory, and 106% without it).

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PGNIG FROM POLAND POSTPONES START OF GAS EXPLORATION IN UKRAINE TO 2021

Polish-based PGNiG has postponed the start of gas exploration in Ukraine from the previously announced third quarter of 2020 to the first half of 2021, head of the company Jerzy Kwieciński has said.
“PGNiG also intends to more actively participate in projects related to production of hydrocarbons in Ukraine. The company plans to start exploration for natural gas in this country in the first half of 2021,” the company said in a press release.
As reported, in February 2020 Vice President of the Board of Directors of PGNiG Robert Perkowski said that PGNiG intends to start developing hydrocarbons in Lviv region in the third quarter of 2020.
Earlier, in early December 2019, the Polish company PGNiG SA and the Ukrainian group of companies ERU signed an agreement on the exploration and production of natural gas in Lviv region.
PGNiG is the largest oil and gas company in Poland, engaged in the development of gas and oil fields, production, storage and transportation of energy resources, as well as construction and development of oil and gas transport networks, export and import of gas.

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UKRAINE RAISES GAS CONSUMPTION IN SIX MONTHS

Ukraine in January-June 2020 increased gross natural gas consumption by 1.2% (by 190 million cubic meters) compared to the same period in 2019, to 15.66 billion cubic meters.
According to the quarterly monitoring data of the National Energy and Utilities Regulatory Commission of Ukraine (NEURC), in the second quarter of this year, consumption increased by 17.6% (720 million cubic meters) compared to April-June 2019, to 4.8 billion cubic meters.
The use of natural gas by household consumers (the population) in the first half of 2020 amounted to 4.76 billion cubic meters (6.5% less from January-June 2019), in the second quarter 1.17 billion cubic meters (31.5% more against April-June 2019).
Thus, the share of household consumers in the total structure of gross consumption in the first half of the year amounted to 30.4% against 32.9% in January-June 2019.

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RUSSIAN GAZPROM TO PAY $2 BLN FOR GAS TRANSIT ACROSS UKRAINE IN 2020

Naftogaz Ukrainy Executive Board Chairman Andriy Kobolev estimates the proceeds from PJSC Gazprom for the transit of Russian gas through the gas transmission system (GTS) of Ukraine at about $2 billion in 2020.
“I think this year the figure will be close to $2 billion,” he told journalist Yanina Sokolova on the YouTube channel on Tuesday evening.
The head of Naftogaz said that the “take or pay” principle enshrined in the contract during the economic crisis is important for the country in terms of obtaining a guaranteed income from the provision of transit services.

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UKRAINE INCREASES GAS IMPORTS BY 30% IN JAN-AUG

Ukraine in January-August 2020 increased imports of natural gas by 30% (by 2.9 billion cubic meters) compared to the same period in 2019, to 12.5 billion cubic meters.
According to Gas Transmission System Operator of Ukraine (GTSOU), some 8 billion cubic meters were received from Slovakia for the eight months (more by 35% compared to January-August 2019), Hungary delivered 3.2 billion cubic meters (20% more), Poland some 1.3 billion cubic meters (34% more). At the same time, 2.3 billion cubic meters, 1.6 billion cubic meters and 800 million cubic meters of gas were imported from Hungary, Slovakia and Poland respectively through backhaul, which became available from the beginning of 2020.
According to GTSOU, 8.2 billion cubic meters of imported volumes since the beginning of the year were sent to UGS facilities for storage in the “customs warehouse” mode, of which 4.9 billion cubic meters came in the shorthaul mode (preferential tariff for certain points) and 3.3 billion cubic meters in the “border-customs warehouse” mode.
In August 2020, imports amounted to 3.4 billion cubic meters of gas, which is 1.7 times (1.4 billion cubic meters) more than in August 2019.
In general, 72 traders ordered gas transportation from the EU to Ukraine in January-August, of which 45 were Ukrainian and 27 foreign companies, and more than 50 customers took advantage of the services of shorthaul and “customs warehouse.”

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GAS TRANSIT VIA UKRAINE’S GTS FALLS

Transit of natural gas through the gas transmission system (GTS) of Ukraine in January-August 2020 amounted to 34.8 billion cubic meters., which is 42% less than in the same period in 2019 (59.6 billion cubic meters).
According to the report of Gas Transmission System Operator of Ukraine LLC (GTSOU), 32.4 billion cubic meters of gas were transported in the western direction (Slovakia – 23.9 billion cubic meters, Hungary – 5.9 billion cubic meters, Poland – 2.6 billion cubic meters), which is 36% less than in January-August-2019, in the trans-Balkan region – 2.3 billion cubic meters (Moldova – 1.87 billion cubic meters, Romania – 0.46 billion cubic meters), which is 73% less than last year in this direction.
Despite a significant drop in transit compared to last year, Gazprom (Russia) fully pays for the transit capacity booked for this year (178 million cubic meters per day), which it used by 80% in January-August.
“For its part, GTSOU fulfills all daily requests and will continue ensuring uninterrupted gas transportation to European countries in the future,” the company said.

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