Ukraine Monitor presents the latest news concerning internal and external matters of Ukraine – a unique country where the interests of the East and the West clash almost every day.
Date: 31 August 2022 Author: Grzegorz Kuczyński
Gas Sector In War-Torn Ukraine
The Russian invasion of Ukraine has delivered a severe blow to the Ukrainian gas sector. Russian gas supplies to Europe via Ukraine have decreased while many infrastructure facilities were badly damaged in Ukraine. Gazprom’s price war elevated prices for European countries and Ukraine will need more gas before the heating season.
By October 15, according to forecast calculations, there will be about 14.4 billion cubic meters of gas, Head of Gas Transmission System Operator of Ukraine (GTSOU) Serhiy Makogon told journalists. Ukrainian Prime Minister Denys Shmyhal told the government meeting that Ukraine had accumulated more than 13 billion cubic meters of natural gas in its underground storage facilities. The authorities in Kyiv are now negotiating with Western nations to receive the financing to purchase gas for the upcoming heating season. The Ukrainian energy ministry forecasts gas consumption will plummet nearly 40 percent, or 7.7 billion cubic meters, in the coming winter heating season compared with last year, to 11.7 bcm, according to Ukrainian MP Yaroslav Zheleznyak. Ukraine plans to consume 18.5 billion cubic meters of gas in 2022. The authorities in Kyiv say the demand for gas would stand between 3 and 5 bcm in various scenarios. Naftogaz CEO Yuriy Vitrenko said the country needed to buy an additional 4 billion cubic meters of gas to get through the upcoming heating season. Possible damage to Ukraine’s critical infrastructure facilities could increase the country’s demand for gas. In the war-stricken Kharkiv region, which produces 40 percent of Ukrainian domestic gas supplies, many gas facilities were destroyed. Furthermore, following the launch of the Poland-Slovakia interconnector, Ukrainian traders will receive additional opportunities. Ukraine will be able to import 4.7 billion cubic meters per year, Makogon said. Gas now flows to Ukraine through the Hermanowice point in Poland.
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