Global energy and commodity price reporting agency Argus Media has launched a Ukrainian natural gas price assessment to bring transparency to a rapidly evolving market.
The new assessment is an important step in the evolution of a freely traded Ukrainian gas market, which has developed since imports from Europe began at the end of 2015, replacing supplies from Russia. A growing number of international trading companies are active in the market, along with domestic gas producers, traders and consumers,” according to a report on the company’s website.
“Ukraine is a large market, and the country has ambitions to align with the EU’s rules on natural gas and electricity, which could make it a more attractive location to trade. Ukraine consumed 30.6 billion cubic meters of natural gas in 2017, placing it in line with some of Europe’s biggest markets. And Ukraine operates a gas storage system that is larger than any in Europe, at a time when market flexibility is at a premium. Trading firms and gas companies inject supply into storage during the summer when demand is low. As temperatures fall in the winter, storage withdrawals are made to meet heating requirements,” it reads.
“Argus is dedicated to providing independent coverage of the Ukrainian gas and power markets. Our focus on Ukraine is because of its growing importance to the European energy system, rapid development and size. This assessment is the culmination of dedicated research and development on the part of our editorial teams in Kyiv and London,” Argus Chairman and Chief Executive Adrian Binks said.
Argus’ Kyiv office opened in 2008, producing motor fuel, LPG and other price assessments, news and analysis.
Naftogaz Trading gas supply company LLC on October 12 signed first contracts on the sale and purchase of natural gas using the new sales format. Gas has been supplied under all of the signed contracts.
The press service of Naftogaz Ukrainy reported that since October 2018, gas is sold to industrial enterprises via Naftogaz Trading with the introduction of the new model for selling gas, and Naftogaz sells gas only under long-term contracts.
The price of gas could change several times a day in line with the changes on the European market and hryvnia exchange rate fluctuations.
“The new gas sales model is flexible and convenient for both the supplier and the consumer. Its implementation will contribute to the development of the Ukrainian gas market and bring it to global standards,” Naftogaz Ukrainy Chief Commercial Officer Yuriy Vitrenko said.
Ukraine after the completion of the heating season increased its natural gas reserves in the underground gas storage facilities by 9.243 billion cubic meters (bcm), according to data from Ukrtransgaz. So, from April 8 to October 14, 2018 gas inventories rose by almost 2.2 times, from 7.435 bcm to 16.678 bcm.
According to the calculations of the Interfax-Ukraine agency, on October 1 through October 14 gas storage facilities were replenished by 443.72 million cubic meters (mcm, 31.69 mcm per day), in September by 1.595 bcm (53.17 mcm a day), in August by 1.793 bcm (57.85 mcm per day), in July by 1.655 bcm (53.38 mcm per day), in June by 1.623 bcm (54.09 mcm per day), in May by 1.632 bcm (52.65 mcm per day), April 9-30 by 500.84 mcm (22.77 mcm per day).
Ukraine came out from the 2017/2018 heating season with the minimum stocks in the last four seasons due to the frosty March-early April.
As reported, the Cabinet of Ministers of Ukraine expects that gas inventories by November 1, 2018 will amount to 17 bcm.
Ukraine has resumed imports of natural gas via Slovakia, suspended from October 2 through October 6 over the scheduled repair works.
According to Slovakia’s Eustream transmission operator, gas supplies on October 7 totaled 23.6 million cubic meters (mcm), which is slightly lower than average imports in September. The application for October 8 is also 23.6 mcm.
As reported, according to the schedule of repair, the second section line of the Dolyna-Yuzhgorod-state border gas pipeline is being repaired, in particular, at compressor stations Dolyna, Rososh, KS-1 and KS-2 Yuzhgorod.
Ukraine in January-September 2018 reduced import of natural gas by 24.7% (by 2.640 billion cubic meters, bcm) compared to the same period in 2017, to 8.065 bcm. Imports from Slovakia during this period amounted to 5.017 billion cubic meters of gas (36.4% less compared to January-September 2017), from Hungary to 2.509 billion cubic meters (27.9% more), Poland to 538.7 million cubic meters (37.4% less).
Ukrtransgaz, fully owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities in the country.
Ukraine in January-September 2018 reduced transit of natural gas through its gas transportation system (GTS) by 7% compared to the same period in 2017, to 65.449 billion cubic meters, according to live data from PJSC Ukrtransgaz. According to calculations made by the Kyiv-based Interfax-Ukraine news agency, in particular transit of gas through Ukraine to Europe during this period amounted to 63.432 billion cubic meters (7.5% down), to Moldova to 2.017 billion cubic meters (11.1% up).
In September 2018, transit of gas decreased by 13.9% compared to the same month in 2017, to 7.232 billion cubic meters. In particular transit of gas through Ukraine to Europe amounted to 7.07 billion cubic meters (14.1% down), to Moldova to 162.1 million cubic meters (0..04% down).
As reported, Ukraine in 2017 increased transit of natural gas through its GTS by 13.7% (11.257 billion cubic meters) compared to 2016, to 93.457 billion cubic meters, in particular transit to Europe amounted to 90.749 billion cubic meters, to Moldova some 2.708 billion cubic meters.
Ukrtransgaz, 100% owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities in the country.
National joint-stock company Naftogaz Ukrainy has accumulated enough volumes of natural gas in its underground gas storage facilities to steadily pass the autumn and winter period, Naftogaz Chief Commercial Officer Yuriy Vitrenko said at a press conference in Kyiv on Tuesday.
“Now there are some 16 billion cubic meters of gas in underground gas storage facilities. This is enough to pass winter with comfort,” he said.
Vitrenko said that there is a strong likelihood that after the completion of the heating season the company would have a good gas reserve in the storage facilities.