Get 40% Off
💰 Ray Dalio just increased his holdings in Google by 162.61% - See the full portfolio with InvestingPro’s free Stock Ideas toolCopy Portfolios

Ukraine hopes to boost winter gas storage for Europe by 60%

Published 01/05/2024, 14:09
Updated 01/05/2024, 14:10
© Reuters. FILE PHOTO: Oleksiy Chernyshov, CEO of the National Joint Stock Company 'Naftogaz of Ukraine', speaks during an interview with Reuters, amid Russia's attack on Ukriane, in Kyiv, Ukraine September 22, 2023. REUTERS/Ivan Lyubysh-Kirdey/File Photo

By Pavel Polityuk and Olena Harmash

KYIV (Reuters) - Ukraine hopes to store around 4 billion cubic metres (bcm) of gas for foreign companies and traders this winter, up 60% from last year, despite Russian airstrikes on the country's energy infrastructure, the head of Ukraine's state energy firm said.

Storing gas helps Ukraine to collect revenues while providing Europe with additional supply flexibility after the continent cut Russian gas imports because of Moscow's invasion of Ukraine.

Oleksiy Chernyshov, chief executive of Naftogaz, told Reuters Russia had attacked the firm's infrastructure five times since March, in the first such attacks since the war began in February 2022.

He said the underground storage was not damaged but Naftogaz was working on strengthening defences as gas pumping facilities above ground are more vulnerable.

Underground facilities, mostly in western Ukraine, have a capacity of 31 bcm. That is enough to cover Ukraine's annual needs and allow storage of surplus volumes from Europe to be released during peak demand in the northern hemisphere winter.

Chernyshov said foreign traders had resumed pumping gas into the storage in recent days. He said volumes were small so far, but he expected them to rise later this year when the heating season approaches.

He did not provide volumes of gas stored so far or the name of those that have stored gas.

Traditionally, Ukraine's storage was used by neighbours such as Poland, but Naftogaz has said it has spoken to firms as far away as France to boost the number of customers.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We are in a period of European shippers' meetings where we agree on the volumes of (gas) injection. They (the Russians) aim to discredit us as an energy hub with storage capacities," Chernyshov said.

Russian officials have said Moscow was attacking Ukraine's energy facilities in retaliation for Ukrainian drone attacks on Russian refineries.

Chernyshov said the company had about 100 contracts with foreign traders to store gas. Russia continues to supply gas to Europe via Ukraine under a transit deal that is set to expire in December. Ukraine has said it does not plan to renew it.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.