The Storage System Operator of Ukraine completed the gas withdrawal season 2020/2021 with record results
On April 30, one of the longest gas withdrawal seasons from the Ukrainian UGSs ended.The season, which lasted a record 194 days, was the first for an independent Storage System Operator after unbundling. It was marked by the highest withdrawal volumes in seven years - 13.2 bcm, diversification of services, and a rapid increase in customer portfolio: in the last six months alone, the Operator has concluded cooperation agreements with 111 companies from Ukraine, the EU, and Asia, which confirms the high demand and interest of global traders in the gas storage market in Ukraine.
Gas withdrawal from UGS
In April 2021, 0.7 bcm of gas was extracted from the Ukrainian UGSs, which is over 35 times more than in the same period of 2020.
In total, 13.2 bcm of gas were extracted from UGSs during the 2020/2021 withdrawal season. For comparison, the withdrawal volumes of the 2019/2020 season were twice lower and amounted to 6.1 bcm of gas.
Use of «Customs warehouse» ** and «short-haul» *** services
As of May 1, 2021, foreign traders store 4.6 bcm of gas in the Customs Warehouse regime. This is almost 4 times more than in the same period last year. This includes 3.4 bcm accumulated in the «short-haul« regime.
Resident companies store 0.54 bcm in the Customs Warehouse regime, which is 2.2 times less than in 2020. This includes 0.46 bcm accumulated in the «short-haul» regime.
High demand for the service of gas storage in the "Customs Warehouse" regime and transportation with a special "short-haul" tariff, which marked the last withdrawal season,was associated, in particular, with the conclusion of a new contract for the transit of Russian gas, which allowed the GTS Operator to continue transporting gas outside Ukraine and increase gas supplies to domestic UGSs.
Natural gas reserve in UGS
As of May 1, 2021, the reserve of natural gas in UGS is 15.1* bcm. This is 8.3% less comparing to the previous year.
«This withdrawal season was special for the Storage System Operator. Two groups of factors played a role. On the one hand, favorable price conditions, in particular the difference in gas price quotes in summer and winter, as well as favorable tariffs for gas storage in Ukrainian UGS. On the other hand, the company's new business processes, which we were setting up all previous year, confirmed their efficiency. For the first time, Ukrainian gas storage facilities worked to ensure the heating season not only in Ukraine but also in the EU countries, as dozens of non-resident companies stored and continue to store gas in our UGSs», – 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.
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