Transit of natural gas through the gas transmission system (GTS) of Ukraine in January-August 2020 amounted to 34.8 billion cubic meters., which is 42% less than in the same period in 2019 (59.6 billion cubic meters).
According to the report of Gas Transmission System Operator of Ukraine LLC (GTSOU), 32.4 billion cubic meters of gas were transported in the western direction (Slovakia – 23.9 billion cubic meters, Hungary – 5.9 billion cubic meters, Poland – 2.6 billion cubic meters), which is 36% less than in January-August-2019, in the trans-Balkan region – 2.3 billion cubic meters (Moldova – 1.87 billion cubic meters, Romania – 0.46 billion cubic meters), which is 73% less than last year in this direction.
Despite a significant drop in transit compared to last year, Gazprom (Russia) fully pays for the transit capacity booked for this year (178 million cubic meters per day), which it used by 80% in January-August.
“For its part, GTSOU fulfills all daily requests and will continue ensuring uninterrupted gas transportation to European countries in the future,” the company said.
The supplier of electricity and energy saving solutions YASNO (DTEK) will also sell natural gas.
According to the company, it has already received a package of licenses for the supply of natural gas and is negotiating the conclusion of the first gas contracts with legal clients.
YASNO is also preparing to supply natural gas to households.
“We understand how convenient and profitable it is for clients to have a single supplier that simultaneously provides electricity, gas, and also helps to save money thanks to energy saving solutions and products. This is a modern European practice that YASNO will implement in Ukraine in combination with a high level of service,” Business Development Director of YASNO Oleksandr Onyshchenko said.
Ukraine increased natural gas imports to 70 million cubic meters (mcm) per day, which is the maximum figure since 2014 when natural gas was supplied from Russia, Head of the Gas Transmission System Operator of Ukraine LLC (GTSOU) Serhiy Makogon has said.
“Such a considerable increase in imports became possible due to the creation of virtual points on the borders with Poland and Hungary, as well as the launch of virtual reverse flow. Last year the maximum imports [from the EU] did not exceed 66 mcm per day and was limited due to the existing infrastructure. Due to virtual reverse flow today, imports could reach up to 170 mcm per day,” Makogon said on his Facebook page on July 11.
He also said that major part of imported gas is pumped into the underground gas storage facilities (UGS) and a significant volume of it is supplied by European companies.
“The introduction of European rules of work on the border is an important part of Ukraine’s integration into the European gas market. Independent imports is a guarantee of fair prices for Ukrainian consumers,” Makogon said.
In June 2020, NJSC Naftogaz Ukrainy will reduce the price of natural gas sold to industrial consumers on an advance payment basis by 20.7% (UAH 849.60) compared to the current month’s price, to UAH 3,256 per 1,000 cubic meters (including VAT).
According to a report on the company’s website, the indicated price is relevant for consumers purchasing gas on an advance payment in the amount of more than 50,000 cubic meters per month, provided that there are no debts to the company and for 100% subsidiaries of Naftogaz Ukrainy.
For other buyers, the price next month will decrease by 19% (by UAH 896.40), to UAH 3,818 per 1,000 cubic meters (including VAT).
DTEK Oil & Gas LLC, which is responsible for the oil and gas business in the structure of DTEK energy holding, in May 2020 reached a record daily level of natural gas production both for the company and private companies in the amount of 5 million cubic meters (mcm), the company said in a press release.
“In May, DTEK Oil&Gas reached the daily natural gas production level of 5 million cubic meters. This figure was achieved for the first time in the history of the company and the entire private gas production of Ukraine,” the report said.
The daily maximum update was achieved through the implementation of infrastructure projects, a deep drilling program with the commissioning of new high-yield wells at Semirenkivske and Machukhske fields, as well as through measures to stimulate wells in the existing fund, the press release said.
“Despite the unstable economic situation in the country and the difficult conditions in the gas production sector due to record low gas prices, we are working hard to implement a strategy to increase natural gas production,” DTEK Oil & Gas CEO Ihor Schurov said.
As reported, in 2019 the company increased natural gas production by 0.66%, to 1.66 billion cubic meters.
DTEK Oil & Gas is an operating company responsible for the oil and gas sector in the structure of DTEK Group.
The reserves of natural gas in underground gas storage facilities (UGS) of Ukraine as of May 10, 2020 amounted to 17.032 billion cubic meters (bcm), according to recent data from JSC Ukrtransgaz.
According to the calculations of the Interfax-Ukraine agency, this volume exceeds the inventory indicator for the same date in 2015-2019 by 1.7-2 times (by 7-8.5 billion cubic meters).
According to Ukrtransgaz, as of May 1, 2020 non-residents stored 1.173 billion cubic meters of gas in the “customs warehouse” mode in the underground gas storage facilities, while residents some 1.197 billion cubic meters.
In particular, today companies from Austria, Germany, Poland, Slovakia, the United States, France, Switzerland and Estonia use the services of UGS facilities in Ukraine.
At the same time, over the four months of this year, the share of foreign traders is a quarter of the total volume of gas pumped into the storage facilities (551 million cubic meters out of 2.318 billion cubic meters).