Despite several attacks on Ukrainian underground gas storage facilities (UGS) in March-April 2024, gas injection and withdrawal by foreign traders are carried out as usual. This was reported by Oleksiy Chernyshov, CEO of Naftogaz Group, in Financial Times article.
Last year, European traders injected about 2.5 bcm of natural gas into Ukrainian gas storage facilities.
This year, the rate of injection by non-residents has slightly decreased, primarily due to unfavorable spreads to winter prices. Thus, while the spread between summer and winter prices exceeded €20/MWh last year, it is about €5/MWh. The gas price is currently not profitable enough for traders to make reserves.
Naftogaz notes that last year, the peak of injection occurred in August-September, and the season lasted until October. European gas storage facilities are approaching their capacity, as of August 10, they are already 87% full.
At the same time, according to Oleksiy Chernyshev, there will be plenty of free space in Ukrainian UGS facilities in September and October. In addition, the company is constantly working on additional infrastructure protection.
