European countries have almost filled their gas storages, so they increased the injection into Ukraine’s UGS facilities for storage.
Over the past few days, foreign traders’ gas injection into Ukraine’s storage facilities has more than doubled – from 8-10 million cubic meters to 20-21.5 million cubic meters per day. This was reported on Thursday, October 27, by GTS Operator of Ukraine.
The head of the company, Sergei Makogon, named the factors that caused a temporary gas surplus in Europe:
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The unusually warm weather resulted in lower consumption than forecast.
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LNG deliveries to EU terminals are huge. Freight is expensive, so traders need to clear tankers quickly.
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The almost full load of European UGS facilities does not allow downloading large volumes.
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“Therefore, traders are ready to reduce gas prices in order to quickly get rid of excess gas quantities. As a result, the price of gas in the EU has fallen below $1,000. This reduction is temporary and the amount of gas can increase significantly when cold weather sets in or there are new Gazprom tricks. Therefore some traders are willing to take risks and import gas for temporary storage in Ukraine to sell it later at a higher price,” Makogon explained.
OGTSU believes the trend of “excess” gas will continue in the coming weeks.
“If more gas can be poured into Europe’s storage facilities today, less gas will need to be bought or saved next year, which may be more difficult than the current one. This is especially true for countries in Central Europe, which in this way will create for themselves not only an additional gas and an alternative delivery route in case of cold weather or unpredictable situations,” said Alexei Yaroshenko, head of the strategy department at OGTSU .
Recall that gas prices fell below one thousand dollars per thousand cubic meters – for the first time since June 14.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.