In the first half of 2020 6,5 bcm of gas were injected into Ukrainian UGS, 2,6 bcm of them – by foreign companies

The first half of 2020 becomes the record-breaking for Ukrainian UGS in recent years. In addition to the increase of gas injection of own production, there is a significant growing demand by European customers for the use of Ukrainian UGS. In the first six months of 2020, European customers injected 2,6 bcm of gas to Ukrainian gas storage facilities. It’s more than three times last year’s figures.


Natural gas reserve in UGS

As of the end of June 2020, more than 19,8 bcm of gas have been accumulated in the underground storage facilities of Ukrtransgaz. This is 47% or 6,3 bcm more than in 2019.

Over the last ten years, the average level of UGS filling at the end of June was 12,4 bcm. This year, the stock of gas in storage has been above average for the last ten years by almost 60%.


Gas injection

The volume of gas injection in the underground storage facilities of Ukraine in the first half of current year – 6,5 bcm of natural gas, that is on 0,2 bcm more than last year. Foreign traders have made a significant contribution to the filling of domestic gas storage facilities. In the six months of this year, they injected 2,6 bcm of gas. The volume of gas owned by foreign companies in UGS has tripled since last year.


«Customs warehouse» and transportation to UGS on «short haul» tariffs

Volume of gas that on 1st of July, 2020, stored domestic companies in «Custom warehouse» regime* is 1,3 bcm (40% less than in 2019). At the same time, traders from European countries and the USA are actively use this service. As of July, 1, 2020, non-resident companies stored in «Custom warehouse» regime 3,6 bcm of gas (+ 253% over the same period last year).

For gas transportation in «Customs warehouse» regime clients of UGS, first of all – foreign ones, increasingly use special tariffs for transportation «short haul»**, established by NKREKP for GTS Operator of Ukraine at the beginning of this year. Since the beginning of the year the residents have transported in «Custom warehouse» 0,14 bcm of gas using this tariff. Non-residents injected from the beginning of the year using this special tariff 1,6 bcm, 0,8 bcm of them only in June. 

“We expect that by the beginning of the selection season, Ukrainian UGS will be filled about 25,5-26,5 bcm of gas. At the same time in 2020 the active volume of gas in UGS will increase to 20% from the highest level in the last ten years 2019 – 21,8 bcm. If the task is completed, this injection season will become the most productive in all the history of Ukrainian gas storage facilities”, - noted Sergiy Oleksienko, CEO of Ukrtransgaz.   



* «Customs warehouse» is a custom regime, which allows the client to save natural gas in storage facilities of Ukraine up to 1095 days without paying taxes and customs duties.

** «short haul» is a service that gives the opportunity to receive a discount on transportation between certain points of entry or exit on inter-state connections (power with restrictions), including for further storage of natural gas in Ukrainian UGS.