Ukraine is expecting a jump in gas flow to the country as European neighbours seek to use its gas storage over the winter months.
According to Ukraine’s national grid, capacity bookings from traders looking to ship fuel to Ukraine are expected to increase in the third quarter. Bookings made by European neighbours already represent a potential flow of 18.2 million cubic metres a day in the third quarter.
Last month, Ukraine’s national grid allocated its underground gas storage capacity through an auction. A total of more than 2.1 million cubic metres of gas per day was booked.
For July, 6.9 million cubic metres a day have been reserved, along with 3.5 million cubic metres a day for the quarter. The grid has said that there will be further opportunities for volumes to be reserved.
“The long-term capacity booking demonstrates European market participants’ willingness to store gas in Ukrainian gas storage facilities seasonally. It is a sign of trust in the Ukrainian gas infrastructure,” said Dmytro Lyppa, CEO of Gas TSO of Ukraine, the country’s gas system operator.
Ukraine has offered the EU the use of more than ten billion cubic metres of its underground storage facilities, equating to a third of the country’s capacity and 10% of the EU’s.
Additionally, in the UK, gas giant Centrica has warned against the impacts of limited gas storage on the country’s energy security.
“The UK now has nine days of peak winter demand in storage capacity, which is by far the lowest in Europe and is nowhere near enough to make our energy system resilient,” said Chris O’Shea, CEO of Centrica, at its annual shareholder meeting on 13 June.
Europe’s gas inventories are on track to nearly fill up by the end of summer. The influence of Russia’s war against Ukraine on European gas supply, and prices, is still being felt by the continent.