JSC Ukrgazvydobuvannia, part of the Naftogaz Exploration and Production division, reduced the production of marketable gas by 0.5% (by 47.8 million cubic meters) in January-September 2020, as compared to the same period last year, to 10.135 billion cubic meters.
Naftogaz noted that it will be more difficult to maintain production at last year’s level in the fourth quarter due to the cumulative effect of negative factors associated with the four months’ lack of approval of the permits required to start drilling, as well as low prices for energy with a consequent reducing of investment in production activities, and a delay of the delivery of equipment and materials due to quarantine restrictions.
In general, it was possible to maintain production volumes over the nine months due to the modernization and construction of ground infrastructure facilities, the implementation of the development program and additional exploration of existing fields, as well as work on new areas.
So, since the beginning of 2020, the divisions of Naftogaz Group have completed the drilling of 27 wells, performed 210 workovers of wells, 75 hydraulic fracturing operations, and 551 coiled tubing operations, completed the reconstruction of four gas treatment units, the construction of four gas pipelines and 66.8 km of plumes.
Natural gas reserves in underground storage facilities (UGS) of Ukraine as of October 17, 2020 reached 28.434 billion cubic meters, or 91.9% of their total design capacity, according to operational data of JSC Ukrtransgaz.
According to the calculations of Interfax-Ukraine, on October 1 through October 17, the storage facilities were filled by 379.6 million cubic meters, and if during October 1 – October 16, the daily injection ranged from 19.6 million cubic meters to 28.2 million cubic meters, then on October 17, it decreased to 10.8 million cubic meters.
Since the end of the season for withdrawing gas from storage facilities on March 26 until October 17, 2020, reserves in Ukrainian UGS facilities have increased by 80.1%, or 12.649 billion cubic meters.
As reported, in the previous heating season, which lasted from November 1, 2019 to March 26, 2020, gas reserves in the country’s underground storage facilities decreased by 6 billion cubic meters (from 21.784 billion cubic meters to 15.784 billion cubic meters).
The system of 12 underground storage facilities of Ukrtransgaz, which fully belongs to NJSC Naftogaz Ukrainy, has a total design capacity of 31 billion cubic meters.
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).
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.
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.
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.
