Ukraine is ready to provide its gas storage facilities to Gazprom

Source : 112 Ukraine

In 2020, 10 billion cubic meters of gas out of 31 billion cubic meters will be available for pumping
21:07, 29 April 2020

Open source

Ukraine is ready to provide the Russian Gazprom with its underground storage facilities for gas as RBK reported citing Executive Director of Gas Transmission System Operator of Ukraine Serhiy Makohon.

According to Makohon, in 2020, 10 billion cubic meters of gas out of 31 billion cubic meters will be available for pumping. Gazprom also may store gas at the Ukrainian underground storage facilities.

“We just have to sign a standard contract of storage; the tariffs are determined by independent regulator and they are the same for all customers (about $10 for a storage cycle fro 1,000 cubic meters of gas),” he said.

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Besides, Makohon underlined that Ukrainian storages are three-five times cheaper than European and it causes demand and economic viability.

Moreover, he noted that Gazprom has an obvious business-case for the usage of the Ukrainian underground storage facilities.

“Already now, the company does not use the paid capacities on transit not entirely – out of 178 million cubic meters, averagely 150 million of cubic meters used daily. In other words, 28 million cubic meters are paid but not used. That is why, it is reasonable to consider the viability of usage of the whole paid capacity of importation of gas to Ukraine; some parts of the volume might be transited and the rest will be storage. In winter, when the demand of the EU will grow, it is possible to extract gas from the storages and send to the EU within paid capacities or buy extra capacities,” he added.

Related: Gas prices for Ukrainians can be reduced thanks to Russian transit, - Energy Minister

Makohon supposed that the situation may grow worse until the autumn when the European storages will be full and Gazprom will need to reduce the transit and pay it in the full volume.

“That is why the temporary storage in Ukraine may become mutually beneficial resolution. We are open for talks,” he underlined.

Earlier, Serhiy Makohon stated that Ukrainian underground gas storage facilities may interest Poland, Moldova, Romania and Hungary.


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