Cold March: 2.2 bcm of gas was withdrawn from UGS in a month – 17 times more than last year
The Storage System Operator of Ukraine is preparing for the gas extraction season's end. During March 2021, 2.2 bcm of gas was withdrawn from underground storage facilities, which is 17 times higher than the withdrawal of the same period last year. The level of UGS filling in March remains the highest in 10 years and slightly exceeds last year's figure – by 1%. At the time of entry into the current withdrawal season, the corresponding difference was 30%.
Significant volumes of gas withdrawal from UGS during the heating season 2020/2021 are explained both by low air temperature indicators and by the high demand for gas storage services from Ukrainian and foreign customers. In the first three months of 2021 alone, the Storage System Operator expanded its customer portfolio to 50 companies (7 of which are residents of foreign countries). Currently, 889 customers from Ukraine and other countries are using the Operator's services.
Gas withdrawal from UGS
Since the beginning of the heating season, 12,45 bcm of gas has been extracted from storage facilities (according to operative data). In particular, in March 2021, 2.2 bcm were extracted from Ukrainian UGS, which is almost 17 times more than in the same period in 2020.
Use of «Customs warehouse» ** and «short-haul» *** services
As of April 1, 2021, foreign traders store 4.98 bcm of gas in the Customs Warehouse regime. This is 7 times more than in the same period last year. This includes 3.8 bcm accumulated in the «short-haul« regime.
Resident companies store 0.55 bcm in the Customs Warehouse regime, which is 1.8 times less than in 2020. This includes 0.46 bcm accumulated in the «short-haul» regime.
Natural gas reserve in UGS
As of April 1, 2021, the reserve of natural gas in UGS is 15.82* bcm. This is 1% higher comparing to the previous year. This is 1% higher than in March last year, and it is the highest level of Ukrainian UGS's filling at least since 2010.
«We are approaching the end of the selection season – six of our underground storages have already entered the neutral period and are preparing for the injection season. I can say that the season was successful. Despite quarantine restrictions, often difficult weather conditions, and high demand for gas both in Ukraine and abroad, the SSO has 100% fulfilled its obligations to all customers and consumers. The heating season in Ukraine went smoothly. At the same time, the current indicators of gas storage filling give us reason to count on the successful completion of the injection season, for which we are already actively preparing», – noted Sergiy Pereloma, acting general director of Ukrtransgaz JSC.
* not including the reserves of Vergunske UGS, located on temporarily occupied territory of Donetsk region;
** «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.