Consignors – which can only be Gazprom – have not been interested by offers of additional capacities for gas transportation through Ukraine for June from Gas Transmission System Operator of Ukraine (GTSOU).
Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 109 million cubic meters per day. The company additionally booked 15 mcm at auction on May 17, giving a total of 124 mcm per day.
GTSOU offered an additional 63.7 mcm per day at the monthly auction on Tuesday; however, there were no bids for this. The outcome of the last major additional auction a month ago was the same.
The announcement of this auction – with the prospect of significant supply growth on the European market – and its outcome have a substantial influence on spot prices for gas on the European market. They reduce under pressure of the appearance of potential new supply and rebound following an unsuccessful auction. Meanwhile, Gazprom prefers not to comment on its plans regarding short-term reservation of Ukrainian capacities.
Gazprom is currently pumping 124 mcm per day on average through Ukraine, fully using the volume booked.
If Gazprom had accepted the offer to use additional transit capacities, it would have meant a return to transportation volumes through Ukraine of 2019, before the new transit contract and payment of $3 billion to Naftogaz in line with a Stockholm arbitration ruling.
Europe is currently dramatically increasing gas consumption. Global supplies of liquefied natural gas and pipeline gas from Russia are at their highest levels, but this so far impedes the start of mass replenishment of gas in underground storage facilities to prepare for next winter.
Gazprom is thus far keeping to a stable approach to the use of Ukrainian transit capacities.
“You see our bookings. Our bookings are visible. Thus far, we remain at the same level,” Gazprom deputy head Elena Burmistrova said during Investor Day when asked about the prospects of increasing transit.
“We’ve had a very difficult winter in Europe, in Russia, in Asia. So we are now looking at our balances and resources – and looking at how we are going to move forward following the end of Q1,” she said.
In April, Gazprom pumps an average of 124 million cubic meters per day through Ukraine, fully using booked volume.
Europe is experiencing a notable shortage of gas for pumping into underground gas storage facilities.
Last Friday, the Ukrainian GTS Operator unexpectedly announced an auction for additional gas pumping to Europe in May in volume of half of current supplies: 64 million cubic meters per day above the current pumping capacity of 124 million cubic meters. However, capacity was left unused following the auction.
Consignors – which can only be Gazprom – have not been interested by offers of additional capacities for gas transportation through Ukraine for May from Gas Transmission System Operator of Ukraine (GTSOU).
Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 109 million cubic meters per day. The company additionally booked 15 million cubic meters (mcm) at an auction on April 19, giving a total of 124 mcm per day.
GTSOU offered an additional 63.7 mcm per day at the monthly auction on Tuesday; however, there were no bids for this.
Gazprom is pumping 124 mcm per day on average through Ukraine in April, fully using the volume booked.
If Gazprom had accepted the offer to use additional transit capacities, it would have meant a return to transportation volumes through Ukraine of 2019, before the new transit contract and payment of $3 billion to Naftogaz in line with a Stockholm arbitration ruling.
Europe is currently dramatically increasing gas consumption. Global supplies of liquefied natural gas and pipeline gas from Russia are at their highest levels, but for now, this does not make it possible to start mass pumping of gas into underground storage facilities to prepare for next winter.
In January 2021, Gazprom transported 124.51 mcm per day on average through Ukraine, in February – 104 mcm, and in March – 119.5 mcm.
Gazprom has booked additional transit capacity via Ukraine for March at a similar volume to its additional booking for February, according to the monthly auction results on the Regional Booking Platform (RBP).
Russia’s state-owned gas company has a long-term booking capacity of 40 billion cubic meters via Ukraine for 2021 at 109 million cubic meters per day, having booked an additional 14.2 million cubic meters per day at the auction for a total of 123.2 million cubic meters per day.
Gazprom on Monday booked additional transit capacity for April on the RBP, having requested 14.2 million cubic meters per day of the 15 million cubic meters per day offered, which was exactly the same result as the auctions for March and February.
The state-owned gas company in March has been pumping an average of 114.7 million cubic meters per day via Ukraine at a minimum of 101.2 million cubic meters per day and at a maximum of 120.3 million cubic meters per day, which has nearly reached the booked maximum.
Gazprom pumped an average of 124.51 million cubic meters per day via Ukraine in January 2021, and 104 million cubic meters per day in February.
Gazprom is booking extra capacities for gas transit through Ukraine for March at the same additional reservation volume as for February, according to the results of the monthly Regional Booking Platform (RBP) auction.
Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 110 million cubic meters per day.
The Russian gas company booked extra transit capacities for March via RBP on Monday. It requested 14.2 mcm per day of the offered 15 mcm per day. The auction result was the same for February.
From February 1 to 13, Gazprom pumped an average of 119.1 mcm per day through Ukraine, with a minimum amount of 115.4 mcm and a maximum of 121 mcm.
In January 2021, the company transported 124.51 mcm per day on average through Ukraine, and in December – 182.63 mcm per day.
NJSC Naftogaz Ukrainy in 2020 rendered services to PJSC Gazprom (Russia) in organizing transportation of natural gas through the territory of Ukraine for $ 2.11 billion.
“For 2020, Gazprom fully paid for the annual capacity of the Ukrainian gas transmission system (GTS) for gas transportation. According to the agreement dated December 31, 2019 between Naftogaz and Gazprom, the cost of booking 65 billion cubic meters of annual capacity is $ 2.1 billion. In addition, in the fourth quarter of 2020, Naftogaz additionally rendered services to Gazprom for the use of the Ukrainian gas transportation system, for which it receives over $ 30 million,” the press release of the company said.
According to the company, the total volume of Russian gas transported in 2020 amounted to 55.8 billion cubic meters.
