14:32 27.04.2021

Gazprom not keen to boost transit via Ukraine 1.5-fold

2 min read
Gazprom not keen to boost transit via Ukraine 1.5-fold

Consignors - which can only be Gazprom - have not been interested by offers of additional capacities for gas transportation through Ukraine for May from Gas Transmission System Operator of Ukraine (GTSOU).

Gazprom has a long-term reservation of Ukrainian capacities in the volume of 40 billion cubic meters for 2021, which is equal to 109 million cubic meters per day. The company additionally booked 15 million cubic meters (mcm) at an auction on April 19, giving a total of 124 mcm per day.

GTSOU offered an additional 63.7 mcm per day at the monthly auction on Tuesday; however, there were no bids for this.

Gazprom is pumping 124 mcm per day on average through Ukraine in April, fully using the volume booked.

If Gazprom had accepted the offer to use additional transit capacities, it would have meant a return to transportation volumes through Ukraine of 2019, before the new transit contract and payment of $3 billion to Naftogaz in line with a Stockholm arbitration ruling.

Europe is currently dramatically increasing gas consumption. Global supplies of liquefied natural gas and pipeline gas from Russia are at their highest levels, but for now, this does not make it possible to start mass pumping of gas into underground storage facilities to prepare for next winter.

In January 2021, Gazprom transported 124.51 mcm per day on average through Ukraine, in February - 104 mcm, and in March - 119.5 mcm.

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