Gazprom delivers 42.3 mln cubic meters of gas to Europe through Ukraine via Sudzha

Business & Economy July 14, 2023, 21:36

The Gas Transmission System Operator of Ukraine said it would shut down gas transit to Europe via the Sokhranovka station starting May 11 due to force majeure

MOSCOW, July 14. /TASS/. Gazprom is supplying gas to Europe through Ukraine in the volume of 42.3 mln cubic meters per day via the Sudzha gas pumping station. The application for deliveries through Sokhanovka was rejected by the Ukrainian side, a Gazprom representative told reporters on Friday.

"Gazprom is supplying Russian gas for transit through the territory of Ukraine in the amount confirmed by the Ukrainian side via the Sudzha gas pumping station, [amounting to] 42.3 mln cubic meters on July 14. The application for deliveries through Sokhanovka was rejected," the company’s representative said.

The day before, the pumping volume reached 42.4 mln cubic meters.

Earlier reports with reference to data released on the Gas Transmission System Operator of Ukraine website said that Russian gas transit through Ukrainian territory might total 42.4 mln cubic meters on July 14.

On May 10, the Gas Transmission System Operator of Ukraine said it would shut down gas transit to Europe via the Sokhranovka station starting May 11 due to force majeure as the company allegedly could not control the Novopskov gas compressor station in the Lugansk Region. As a result, transportation requests would be rejected, and gas wouldn’t be accepted.

However, the Russian gas holding did not see any grounds for the suspension of pumping under the previous arrangement, noting that it did not receive any confirmation of any force majeure circumstances. The company added that it was technically impossible to shift all transit volumes to another interconnection point, the Sudzha gas distribution station in Russia’s Kursk Region.

European gas market situation

In early July, the pace of gas injection into underground storage facilities (UGS) across Europe was 29% lower than the previous year and the lowest in the previous nine years. At the same time, storage facilities are around 80.5% full. Total liquefied natural gas (LNG) sales in the EU continue at historical highs, with gas trading at around $310 per 1,000 cubic meters.

According to Gas Infrastructure Europe (GIE), gas withdrawal from UGS plants in EU countries totaled 17 mln cubic meters on July 12. At the same time, 277 mln cubic meters were injected.

The gas withdrawal season from European underground storage facilities came to an end on April 6. A mild winter greatly aided the passage of Europe's heating season. However, there is no guarantee that the next heating season would be the same, according to Gazprom. Europe's injection rates into gas reserves in UGS facilities to last year's levels may prove difficult due to politically motivated refusal of Russian pipeline gas and rising competition for LNG, the Russian company said.

UGS facilities in Europe are currently 80.48% full, which is 14.9 p.p. more than the five-year average, containing 87.85 bln cubic meters of gas.

The current week in Europe is expected to be just as warm as the previous one. Air temperatures in almost all EU countries will be above the climatic norm. In July, the average percentage of wind energy in EU electricity generation exceeded 14%.

In the first half of the year, LNG supplies from terminals into the gas transmission system of Europe increased by more than 8% year-on-year and reached an absolute maximum in the entire history of observations. Now the capacities of regasification of liquefied gas and its further injection into European pipelines are at 64% of the maximum. At the same time, the average gas purchase price in Europe in July fell to $360 per 1,000 cubic meters.

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