Business news from Ukraine

Transit of natural gas through the gas transmission system (GTS) of Ukraine in January-October 2021 amounted to 35.3 billion cubic meters, which is 21.6% less than in the same period of 2020 (45 billion cubic meters), and 56.7% less than in ten months of 2019 (81.5 billion cubic meters), according the Gas Transmission System Operator of Ukraine (GTSOU).
In particular, in the western direction 32.456 billion cubic meters of gas were supplied by transit (to Slovakia – 22.43 billion cubic meters, to Hungary – 6.799 billion cubic meters, to Poland – 3.227 billion cubic meters); in the south direction – 2.833 billion cubic meters were supplied (to Moldova – 2.439 billion cubic meters, and to Romania – 394 million cubic meters).
In October, transit amounted to 2.634 billion cubic meters, which is 19.1% less than in September due to the cessation of gas supplies to Hungary via the Ukrainian route by Gazprom. In particular, in the direction of Slovakia, transit amounted to 2.117 billion cubic meters, Poland – 342 million cubic meters, and Moldova – 176 million cubic meters.
The GTSOU notes that according to the results of booking the capacities of the Ukrainian GTS on the RBP and GSA platforms for October 2021, Gazprom not only did not book the additional transit capacities, but also significantly reduced the use of the booked annual capacities, since no applications for transit of Russian gas to Hungary were received from October 1.
As a result, the average daily volumes of Russian gas transported through the territory of Ukraine in October fell to 86 million cubic meters, which is below the minimum volume under the current transit agreement (110 million cubic meters).
“We are concerned about the reduction in transit of Russian gas through the Ukrainian route: since October 1, the volume of pumping has been lower than the booked capacity. Although since November 1, transit to Moldova has increased thanks to a new contract for the supply of gas from the Russian Federation, however, the overall use of the Ukrainian GTS capacity for transit of Russian gas continues to decline: on average, at the beginning of November, it was 60 million cubic meters per day,” GTSOU Director General Serhiy Makogon said.

Transit of natural gas through the gas transmission system (GTS) of Ukraine in January-July 2021 amounted to 25.616 billion cubic meters, which is 14.1% less than in the same period in 2020 (29.82 billion cubic meters), according to the data of Gas Transmission System Operator of Ukraine (GTSOU).
In particular, in January, transit amounted to 3.863 billion cubic meters (124.6 million cubic meters per day), in February – 2.907 billion cubic meters (103.8 million cubic meters per day), in March – 3.694 billion cubic meters (119.2 million cubic meters per day), in April – 3.718 billion cubic meters (123.9 million cubic meters per day), in May – 3.86 billion cubic meters (124.5 million cubic meters per day), in June – 3.723 billion cubic meters (124.1 million cubic meters per day), in July – 3.851 billion cubic meters (124.2 million cubic meters per day).
According to the press service of the company, in particular, 23.3 billion cubic meters of gas were transported by transit in the western directions (Slovakia – 15.8 billion cubic meters, Hungary – 5.3 billion cubic meters, Poland – 2.2 billion cubic meters), in the south – 2.3 billion cubic meters (Moldova – 1.9 billion cubic meters, Romania – 400 million cubic meters).
GTSOU notes that in July Gazprom used all previously booked capacities, but showed no interest in additional transit capacities, despite the record growth in prices in European gas markets, as well as low volumes in European storage facilities and the planned stop of Yamal-Europe routes and Nord Stream 1.
According to GTSOU Director General Serhiy Makogon, Gazprom is emptying its UGS facilities in Europe in order to compensate Europeans for the lost gas volumes, and at the same time not to increase additional transit through Ukraine.