WARSAW, May 26. /TASS/. Gas transit via the Yamal-Europe pipeline from Russia via Belarus and Poland to Germany has been limited in recent days due to low demand for pipe capacities, Gaz-System, operator of the Polish gas pipeline network said in a statement on Tuesday.
"Currently, there are much fewer orders, but throughput capacities are ordered every day, starting May 17, 2020," the operator says.
"Gaz-System carries out the transit service of the Yamal [pipeline] is carried out by the on an ongoing basis in accordance with customer orders. The use of the gas pipeline’s capacities is carried out in accordance with EU legislation on the basis of participation in auctions," the operator explains.
"Orders are fully executed, and with such a low level of capacity orders from the east, there is no need for the compressor to work around the clock. Therefore, the Yamal pipeline does not operate continuously. Periodically, if gas orders from Germany are higher than orders from the east, physical transfer can also begin in reverse at the Mallnow point from Germany to Poland," the operator adds.
According to the company’s website, gas transit via the Yamal pipeline towards Western Europe was based on a transmission contract concluded by the Owner of the TGPS. Upon its expiration on May 17, 2020 at 8:00 a.m., over 90% of the technical capacity at Kondratka TGPS point and 100% of the technical capacity at Mallnow TGPS point will be at the disposal of the TGPS Operator.
Until the end of May, capacity booking for the Polish section of the Yamal-Europe gas pipeline will be carried out in accordance with the European Union regulations, or by means of auctions for midday, daily, monthly and quarterly products, the operator says.
Reduction of transit volume
Earlier on Tuesday operators of European gas pipelines reported that the transit via the Yamal-Europe pipeline from Russia through Belarus and Poland to Germany had been brought down to zero on Tuesday. According to the results of the latest auction, the Polish section of the pipe was booked only by 3.7% on Tuesday.
According to the Gascade company, gas supplies at the Mallnow point on the Polish-German border began to decline gradually over the weekend and reached zero at 08:00-09:00 am on Tuesday. Prior to this, at 06:00-07:00 am, the supply volume was 272.190 kWh (about 25,800 cubic meters), which is less than 1% of the nomination volume. Late on Monday, 11.231 mln kWh (a little over 1 mln cubic meters) were delivered through the pipe, which is 85 times lower than the nomination. On average, since the beginning of the month, supply volume ranged from 440-750 mln kWh.
The long-term Russian-Polish agreement on gas transit from Russia to the West through the Polish section of the Yamal-Europe gas pipeline expired on May 17.
Deliveries are now carried out on the basis of daily auctions the Polish pipeline’s capacity conducted by Gaz-System, which is the operator of the Polish gas transmission network.
According to the information posted on the auction platform of the company, on Tuesday morning only 3.7% of the pipeline's capacity (Polish section) was reserved at the auction. At the same time, the volume of gas deliveries from Russia to Germany via the Nord Stream pipeline, judging by the data of the gas pipeline operator, has not increased.
As experts previously noted, after the expiration of the long-term contract, the Polish route can be used to balance gas supplies to Europe. Having reduced the pumping through Yamal-Europe during a period of weak demand in the region, Gazprom may load the Nord Stream or Ukrainian route, the capacities of which have already been paid.
At an auction in May, the capacity of the Polish section of the Yamal-Europe gas pipeline following was reserved by approximately 93% for June. Earlier, in a similar way, gas pipeline capacities were reserved for the third quarter of 2020. According to Iwona Dominiak, Gaz-System spokeswoman, about 80% of the gas pipeline’s available capacity was booked at the auction. Although the operator’s representative refused to name the bidders, experts agree that Gazprom was and will be the only bidder in such auctions.
About route
The Yamal-Europe gas pipeline has the capacity of about 33 bln cubic meters of gas per year and is stretched over territories of Russia, Belarus, Poland and Germany.
Currently, EuRoPol GAZ, a joint venture of Gazprom and the Polish PGNiG, owns the Polish section of the pipeline. At the same time, Gaz-System is the operator of the pipe section, as well as of the entire gas transmission system in Poland.