S&P Global Platts: Ukrainian gas storage injections still holding above 100 million cu m/d

Kiev, August 24 - Neftegaz.RU. Natural gas injections into Ukrainian storage reservoirs have showed no signs of slowing down despite a different trend being observed in the rest of Europe as players continue to place large volumes of gas into stock in the country, analysis by S&P Global Platts shows.

So far this month, over 100 million cu m of gas has been injected into storage reservoirs after market participants utilized exit capacity at the Velke Kapunsany complex on the Slovakia/Ukraine border.

Exit capacity at Velke has been available since July 1, but jumped on the first day of August due to more favorable market conditions, leading to the boost in reservoir injections as a result.

Indeed, between the Aug. 1-19 gas days, a total of 2.025 Bcm has been injected into storage in Ukraine at an average of 107 million cu m/d in comparison to the 2.239 Bcm (72 million cu m/d) seen during the previous month, data from UkrTransGaz and S&P Global Platts Analytics showed.

At the beginning of the Aug. 20 gas day, Ukraine held 24.133 Bcm in stock, almost 7 Bcm higher on an annual basis and is due to continue to set fresh record highs on a daily basis for the near-term with injections for the rest of August and into September highly likely to continue at elevated levels with close to 31 Bcm able to be held in stock.

The gas for injections into Ukraine has been primarily sourced from Germany, sent via the Czech Republic and Slovakia, and has not dented exports into Austria for further transit towards Italy.

Despite the fact that maintenance works on the Norwegian Continental Shelf are likely to see a drop in pipeline gas exports from the country, flows of gas into Germany via the Nord Stream pipeline are due to remain at full capacity, allowing market participants to move gas back into the Czech Republic with little disruption.