14:28 29.06.2021

Gazprom refuses to book additional interruptible transit capacity via Ukraine for July despite upcoming major pipeline repairs

2 min read
Gazprom refuses to book additional interruptible transit capacity via Ukraine for July despite upcoming major pipeline repairs

Gazprom has again refused to book additional transit capacity via Ukraine for July despite the upcoming major repairs on export gas pipelines, according to data of the Regional Booking Platform.

Gas Transmission System Operator of Ukraine LLC on Tuesday put up for auction additional interruptible transit capacities for July totaling 63.7 million cubic meters per day, which were fully unclaimed.

Russia's state-owned gas company has a long-term booking capacity of 40 billion cubic meters via Ukraine for 2021 at 109 million cubic meters per day, having booked an additional 15 million cubic meters per day at the June 21 auction for a total of 124 million cubic meters per day. Gazprom in June has been pumping an average of 124 million cubic meters per day via Ukraine at the fully booked volume.

When an auction for solid capacities is 100% sold, then an auction for interruptible capacities may be organized depending on the capabilities of the gas transmission system operator.

Gazprom earlier this year did not book interruptible capacities during the auctions held for May and June. However, major repairs are scheduled for July along the concern's main export trunklines. For example, Nord Stream, which pumps 170 million cubic meters per day, is scheduled for annual maintenance from July 13 to 23; and Yamal-Europe, which pumps around 100 million cubic meters per day, is scheduled for maintenance from July 6 to 10.

The balance of the European gas market is becoming increasingly tense because of the unusual seasonal regularity of falling LNG supplies, and supplies of pipeline gas are decreasing owing to scheduled repairs. Pumping of gas into underground storage facilities is at minimum levels, leaving little doubt that Europe could begin the new winter season with half-empty UGS facilities.

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