DTEK Oil & Gas LLC, which is responsible for the oil and gas business in the structure of DTEK energy holding, in May 2020 reached a record daily level of natural gas production both for the company and private companies in the amount of 5 million cubic meters (mcm), the company said in a press release.
“In May, DTEK Oil&Gas reached the daily natural gas production level of 5 million cubic meters. This figure was achieved for the first time in the history of the company and the entire private gas production of Ukraine,” the report said.
The daily maximum update was achieved through the implementation of infrastructure projects, a deep drilling program with the commissioning of new high-yield wells at Semirenkivske and Machukhske fields, as well as through measures to stimulate wells in the existing fund, the press release said.
“Despite the unstable economic situation in the country and the difficult conditions in the gas production sector due to record low gas prices, we are working hard to implement a strategy to increase natural gas production,” DTEK Oil & Gas CEO Ihor Schurov said.
As reported, in 2019 the company increased natural gas production by 0.66%, to 1.66 billion cubic meters.
DTEK Oil & Gas is an operating company responsible for the oil and gas sector in the structure of DTEK Group.
DTEK, GAS, OIL&GAS, PRODUCTION, RECORD
The reserves of natural gas in underground gas storage facilities (UGS) of Ukraine as of May 10, 2020 amounted to 17.032 billion cubic meters (bcm), according to recent data from JSC Ukrtransgaz.
According to the calculations of the Interfax-Ukraine agency, this volume exceeds the inventory indicator for the same date in 2015-2019 by 1.7-2 times (by 7-8.5 billion cubic meters).
According to Ukrtransgaz, as of May 1, 2020 non-residents stored 1.173 billion cubic meters of gas in the “customs warehouse” mode in the underground gas storage facilities, while residents some 1.197 billion cubic meters.
In particular, today companies from Austria, Germany, Poland, Slovakia, the United States, France, Switzerland and Estonia use the services of UGS facilities in Ukraine.
At the same time, over the four months of this year, the share of foreign traders is a quarter of the total volume of gas pumped into the storage facilities (551 million cubic meters out of 2.318 billion cubic meters).
Ukraine in 2019 reduced consumption of natural gas (excluding in-process losses) by 7% compared to 2018, to 26.4 billion cubic meters.
According to JSC Ukrtransgaz, the use of natural gas for in-process losses by the companies of the Naftogaz group (excluding the volumes of gas distribution network operators, private production companies, etc.) amounted to 3.4 billion cubic meters last year, which is 8% less than in 2018.
Ukraine in 2019 increased transit of natural gas through its gas transmission system (GTS) by 3.2% (by 2.807 billion cubic meters) compared to 2018, to 89.586 billion cubic meters, according to recent data from JSC Ukrtransgaz.
According to the calculations of the Interfax-Ukraine agency, in particular gas transit through the country to Europe last year amounted to 86.696 billion cubic meters (3.4% more from 2018), to Moldova some 2.890 billion cubic meters (1.7% less).
In December 2019, gas transit increased by 6.3% (by 479.8 million cubic meters) compared to the same month of 2018, to 8.092 billion cubic meters. In particular, gas transit through Ukraine to Europe amounted to 7.736 billion cubic meters (up by 7%), Moldova some 356.1 million cubic meters (7.2% less).
Natural gas production in Ukraine fell 0.8% year-on-year in January-November 2019, to 18.916 billion cubic meters (bcm), the Energy and Environment Protection Ministry has told Interfax-Ukraine.
Naftogaz group enterprises lowered gas output by 2.2%, to 14.722 bcm: Ukrgazvydobuvannia produced 13.653 bcm of gas, down 2.9%, Ukrnafta produced 1.062 bcm, up 8.1%, and Chornomornaftogaz produced 6.5 million cubic meters (mcm), down 10.3%.
Other producers boosted gas output by 4.4%, to 4.194 bcm in the 11 months. The biggest of them were Naftogazvydobuvannia with 1.509 bcm, Ukrnaftoburinnia with 670.03 mcm, and ESKO-Pivnich, which produced 486.59 mcm.
German Chancellor Angela Merkel welcomed the results of the gas talks between Ukraine and Russia, German government spokesperson Ulrike Demmer wrote on Twitter on December 31.
“I [Angela Merkel] am glad that the talks on the transit of Russian gas through Ukraine, which have been held for a year and a half, could now be successfully concluded,” reads Merkel’s statement posted by Demmer.
Merkel also noted that the continuation of gas transit through Ukraine from January 1, 2020 is “a good and important signal for ensuring our gas supply security in Europe.”
She thanked the Russian and Ukrainian governments, Vice-President of the European Commission Maroš Šefčovič, Germany’s Federal Minister for Economic Affairs and Energy Peter Altmaier and other participants for the successful results of the talks.
As reported, Russia’s Gazprom, NJSC Naftogaz Ukrainy, Gas Transmission System Operator of Ukraine LLC (GTSOU) and the Justice Ministry of Ukraine signed a package of documents that allow to continue gas transit via Ukraine after December 31, 2019, consistent with the protocol signed on December 20, 2019.
“Five days of continuous bilateral negotiations in Vienna have resulted in final decisions and final agreements. Also, the sides have signed a package of agreements and contracts as a big package deal, which restores balance of interests. The documents take effect today to ensure Russian gas transit via Ukraine after December 31, 2019,” Gazprom CEO Alexei Miller told the press.
