Business news from Ukraine

Business news from Ukraine

Naftogaz is negotiating gas storage with Germany’s RWE, Norway’s Equinor, France’s TotalEnergies and Engie

Naftogaz of Ukraine is negotiating gas storage deals with Germany’s RWE, Norway’s Equinor, France’s TotalEnergies and Engie, the group’s CEO Oleksiy Chernyshov told Bloomberg.

According to him, there is still time to conclude agreements, as the largest volumes of gas injection usually occur in August and September.

Chernyshov also clarified that so far no foreign company that already stores gas in Ukraine has abandoned its decisions, despite the recent Russian attacks on gas infrastructure.

The company continues to serve customers and repair equipment damaged by recent rocket attacks.

The Head of the NJSC reminded that the state energy regulator has recently improved the conditions for gas storage from June 1, 2024. The new rules include shorter booking intervals for capacity – for months rather than for a whole year, which improves the attractiveness of Ukrainian storage facilities for foreign traders.

As reported, in 2023, the volume of gas from foreign traders and energy companies pumped into Ukrainian UGS facilities for storage reached 2.5 bcm. This year, Naftogaz expects to increase this figure to 4 bcm.

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“KAMETSTAL” implements coke oven gas pressure stabilization project to improve energy efficiency

Metinvest Group’s Kametstal plant, which was built at the facilities of Dnipro Metallurgical Plant (DMK, Kamianske, Dnipro region), has implemented an investment project to stabilize coke oven gas pressure in the plant’s system to improve energy efficiency and energy independence.

According to a press release, Kametstal has implemented an investment project aimed at stabilizing coke oven gas pressure in the plant’s system as part of the introduction of modern technologies to improve economic efficiency and energy independence.

At the same time, it is specified that comprehensive tests of the installation of a coke oven gas storage system in gas collectors with the possibility of returning to the plant’s gas system have been completed at the site of the company’s power plant. The project is based on a modern technology for collecting excess coke oven gas that occurs in the network during the coke production process into soft gas holders to use it for the needs of the enterprise.

The infrastructure of the new complex, in addition to the pressure stabilization system equipment site, where two soft gas holders are installed – each with a filling volume of almost 580 cubic meters of gas, also includes a compressor building with two turbochargers for pumping gas and one air compressor, a condensate collection unit, technological networks and other equipment.

It is emphasized that the use of soft synthetic gas collectors is the latest approach to gas storage. Their advantages over metal ones include, first of all, an economical and less labor-intensive installation phase, as well as improved working conditions for personnel during maintenance during operation. The gas storage complex is fully automated and equipped with a preventive process safety system.

“The implementation of this investment project is another step of the enterprise and the company towards the priority goal of stable production. In the future, the coke oven gas storage unit will allow us to use this high-calorie gas more efficiently without losing its excess volumes. This is an opportunity to be more energy independent within the framework of the enterprise’s needs and increase the efficiency of production processes,” explained Mikhail Koptev, Director for Capital Construction and Investments.

“KAMETSTAL was established on the basis of PJSC Dnipro Coke and Chemical Plant (DCKhZ) and Centralized Steel Works of PJSC Dnipro Metallurgical Plant (DMK).

According to the 2020 report of Metinvest Group’s parent company, Metinvest B.V. (Netherlands) owned 100% of the shares in DCCP.

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GTSOU to create 167 new mobile crews to maintain gas distribution stations

“In 2024, Gas TSO of Ukraine will create 167 new mobile teams to service gas distribution stations (GDS), the company’s press service reports.

According to it, the equipment maintenance and repair project is part of GTSOU’s strategy to improve the reliability and efficiency of the gas transmission system.

Currently, 43 mobile teams are working within its framework, each of which serves its own “bush” – several gas distribution stations and the adjacent linear part of gas pipelines. In 2024, the maintenance teams will service 819 GDSs.

A similar practice of gas infrastructure maintenance is used in Europe. In particular, GTSOU was guided by the experience of the Italian operator Snam, which maintains not only GDSs, but also the linear part and compressor stations in this way.

“Mobile maintenance is an efficient use of resources through the involvement of personnel in servicing, first of all, gas distribution systems. The application of this approach involves a number of measures, including a significant improvement in the condition of the gas distribution system. If the technical condition of the facility allows us to change the form of maintenance, we include it in the service area of the mobile maintenance unit,” explained Yuriy Zyabchenko, Chief Engineer of GTSOU.

To ensure that the work of mobile teams meets the standards of European operators, is automated and transparent, GTSOU requested and received technical assistance from USAID through the Energy Security Project to purchase a mobile application.

“Already in 2024, mobile teams will use the mobile application in their work as the main tool for recording information on the technical condition of equipment. This will help improve the quality of maintenance and repair of gas infrastructure and reduce the number of emergency shutdowns,” the operator reminded.

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“Naftogaz” increased gas production from workover wells by 20%

In 2023, Naftogaz Group increased production from workover wells by 20% compared to pre-war 2021, which was a record high for the last four years.

“This figure is 20% higher than production in pre-war 2021. I am sincerely grateful to the specialists of Ukrgazvydobuvannya and the entire team that made this result possible,” the group said on its website, citing Naftogaz CEO Oleksiy Chernyshev on Thursday.

Recently, Ukrgasvydobuvannya JSC (UGV), a part of the Naftogaz group, has overhauled and restored an old well, which now additionally produces more than 340 thousand cubic meters of gas per day.

This well had been awaiting abandonment for a long time, but in 2023, experts conducted a detailed analysis, reviewed technical and geological risks, and decided to restore the well through workovers.

“Our experts are constantly working on reviewing and analyzing old wells that can be brought back into operation due to better technical capabilities than decades ago,” commented Oleh Tolmachov, Acting CEO of Ukrgasvydobuvannya.

As reported, in 2022, Ukrgasvydobuvannya produced 12.5 bcm of natural gas (commercial), which is 3% less than in 2021. According to operational data, the company increased production by more than 0.7 bcm in 2023.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

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“Ukrnafta” increases oil and condensate production by 0.2%, gas production by 8.3%

In January 2024, PJSC Ukrnafta increased oil and condensate production by 0.2% (by 0.27 ktonnes) compared to January last year to 121.08 ktonnes, and gas production by 8.3% (by 7.77 mcm) to 100.91 mcm.

According to the company’s press release, the total production in oil equivalent of hydrocarbons amounted to 207.87 ktonnes, which is 3.5% more than in January 2023 (200.92 ktonnes).

“I am grateful to the company’s specialists who continue to increase the production of Ukrainian resources for the second year in a row. We continue to drill new wells, implement production stimulation measures and upgrade old equipment to API standards,” Ukrnafta CEO Serhiy Koretsky said in a statement.

As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production – by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.

“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.

“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.

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“Ukrnafta” increases reserves by 330 thousand tons of oil and 618 mln cubic meters of gas

PJSC Ukrnafta has increased its reserves by 330 thousand tons of oil and 618 million cubic meters of gas by expanding the boundaries of two existing special permits, the company’s press service reports.

According to the company, the reason for expanding the boundaries of the special permits is to bring their size to the contours of the field’s productive deposits.

The subsoil area of the first special permit now amounts to 18.33 square kilometers, which is 23.1% more than the previously granted area. Total reserves increased by 217 thousand tons of oil and condensate and 232 million cubic meters of gas.

The area of the second license increased by 16.3% to 41.75 square kilometers. Total reserves increased by 113 thousand tons of condensate and 386 million cubic meters of gas.

“By 2023, the company has expanded the boundaries of special permits only twice. I thank the company’s employees who prepared and submitted the necessary applications and packages of documents to the State Service of Geology and Subsoil of Ukraine, after which the relevant orders were received, thus increasing the opportunities for resource extraction,” said Sergiy Koretsky, CEO of Ukrnafta.

As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.

“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.

“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.

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