Business news from Ukraine

UKRAINE INCREASES GAS TRANSIT

Ukraine in January-November 2019 increased transit of natural gas through its gas transmission system (GTS) by 2.9% (by 2.327 billion cubic meters) compared to the same period in 2018, to 81.494 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 for the 11 months amounted to 78.960 billion cubic meters (3.1% more compared to January-November 2018), to Moldova some 2.534 billion cubic meters (0.9% down).
In November 2019, gas transit rose by 15.4% (by 1.095 billion cubic meters) compared to the same month of 2018, to 8.197 billion cubic meters. In particular, gas transit through Ukraine to Europe amounted to 7.910 billion cubic meters (16.8% more), Moldova some 286.9 million cubic meters (13.1% less).

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UKRAINE INCREASES GAS IMPORTS BY 38%

Ukraine in January-November 2019 increased natural gas imports by 38.1% (by 3.854 billion cubic meters) compared to the same period in 2018, to 13.967 billion cubic meters, according to recent data from JSC Ukrtransgaz. According to the calculations of the Interfax-Ukraine agency, imports from Slovakia amounted to 9.034 billion cubic meters over 11 months (up by 45% compared to January-November 2018), from Hungary to 3.542 billion cubic meters (9.9% more), Poland to 1.931 billion cubic meters (2.1 times more).
In November 2019, imports amounted to 669 million cubic meters of gas, which is 31.1% less than in the same month of 2018 (971.2 million cubic meters).
As reported, Ukraine has not been importing natural gas under the contract with PJSC Gazprom (Russia) for four years (since November 26, 2015), purchasing resources exclusively on its western border.

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UKRAINE REDUCES GAS STOCKS 4.7%

Ukraine reduced gas stocks in underground storage facilities 4.7% or by 1.022 billion cubic meters (bcm), to 20.761 bcm between November 1 and 30, according to preliminary data from gas infrastructure operator JSC Ukrtransgaz.
According to Interfax-Ukraine’s calculations, the gas stocks on November 30 were 28.7% higher than on the same date last year, 28.8% higher than on November 30, 2017 and 53.1% higher than on November 30, 2016.
Gas withdrawals from underground storage facilities totaled 48.65 million cubic meters on November. Ukraine imported 17.49 mcm and produced 56.33 mcm of gas that day.

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UKRAINE IMPORTS GAS FOR $1.8 BLN IN JAN-SEPT

Ukraine imported 9.183 billion cubic meters (bcm) of natural gas for $1.801 billion in January-September 2019, including 1.481 bcm for $264.725 million in September, the State Statistics Service has said. The average price of gas imported by the country in September 2019 was $178.8 per 1,000 cubic meters, up 12.8% from $158.5 in August.
The main suppliers in January-September 2019 were companies from Switzerland with 4.05 bcm for $769.631 million, Germany – 2.827 bcm for $546.666 million, Czech Republic – 478.645 mcm for $91.23 million, Hungary – 462.888 mcm for $88.617 million, Poland – 342.778 mcm for $71.695 million, France – 356.617 mcm for $69.983 million, Austria – 267.171 mcm for $72.437 million, the U.K. – 154,599 mcm for $38.112 million, Luxembourg – 133.663 mcm for $32.256 million, Slovakia – 92.011 mcm for $16.215 million, Italy – 16.893 mcm for $3.487 million and Bulgaria – 1.4 mcm for $0.255 million.
Gas was not imported from Russia for the indicated period.
Ukraine imported 10.39 bcm for $3.12 billion in 2018.

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UKRAINE HAS SUFFICIENT GAS AND COAL TO PASS HEATING SEASON WITHOUT RUSSIAN TRANSIT

Ukraine has accumulated significant reserves of natural gas in its underground gas storage facilities and coal in the warehouses of thermal power plants, which will allow passing this winter even in case of interruption in gas transit from January 1, 2020, Minister of Energy and Environment Protection of Ukraine Oleksiy Orzhel has said.
“This means that Ukraine this winter, even without transit, will not be cold,” he said on the air of ICTV Channel.
According to him, traditionally the greatest risks may arise in February-March, when stocks in underground gas storages become smaller. At the same time, stress tests conducted by the GTS operator indicate that even on the peak days of maximum consumption, the country will be able to satisfy the gas demand of Ukrainian consumers.
Orzhel also said that the government is developing mechanisms to prevent a sharp increase in gas prices in winter for consumers in the country.
As reported, as of November 16, 2019 Ukraine has 21.530 billion cubic meters in underground gas storage facilities, which exceeds the November 16, 2018 reserves by 27.1%, those on November 16, 2017 by 29.3%, and November 16, 2016 by 52.5%.
Coal reserves in the warehouses of thermal power plants of energy generating companies of Ukraine amount to 2.243 million tonnes, which is 33.6% more than last year’s reserves.

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SLOVAKIA’S NAFTA WINS AUCTION TO DEVELOP OIL AND GAS FIELD IN UKRAINE

Nafta RV LLC, a subsidiary of Slovakia’s Nafta, has won an electronic auction to receive a license for developmet of the Vantazhkivske oil, gas field (Poltava region), according to information on the ProZorro.Sale platform. During the auction held last Wednesday, Nafta RV offered UAH 6.846 million for the license compared with Optima Resource private enterprise, which stopped at the starting price of UAH 6.795 million.
After registering the required documents, Nafta RV will receive a subsurface site for geological exploration and further research and development for a period of 20 years.
According to the materials of the auction, prospective gas resources of category C3 at the Vantazhkivske field were estimated at 3.091 billion cubic meters. It is recommended to drill two exploratory wells with a depth of 5,700 meters and 6,300 meters.
Nafta’s main shareholder is EPH holding of Czech businessman Daniel Křetínský.

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