European traders have begun storing natural gas in Ukrainian underground storage facilities to take advantage of lower prices and capacity, despite the risks of an all-out war between aggressor Russia and Ukraine.
.in_text_content_22 { width: 300px; height: 600px; } @media(min-width: 600px) { .in_text_content_22 { width: 580px; height: 400px; } }
As Reuters writes, citing three traders and company representatives, after the outbreak of the big war, Brussels sought to obtain large volumes of gas storage to compensate for the reduction in Russian supplies, especially during peak demand in the winter months. The European Union is expected to reach the goal of filling its storage facilities by 90% by November 1st.
Traders point out that there is a commercial logic to storage in Ukraine outside of the EU to take advantage of lower prices now rather than future supplies.
Based on prices on the Dutch TTF gas futures market, the gas price for September delivery is €30 ($32.96) per MWh, compared to Q1 2024 forward prices of €49.
EP Commodities transports natural gas to Ukraine and uses Ukrainian gas storage facilities. We believe in the reliability of Ukraine’s gas transportation and storage systems, which have proven themselves even in such a difficult wartime environment,” said Miroslav Gasko, Chairman of the Board of the Czech group EP Commodities EPH.
According to the GIE transparency platform, on August 7, gas storage facilities in EU countries were 87% full. NJSC “Naftogaz Ukrainy” said that foreign customers can use more than 10 billion cubic meters. m of storage facilities in the country in the amount of about 30 billion cubic meters. m, mainly in the west of the country, that is, away from the front line. Ukraine can increase storage facilities in Europe by about 10%.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.