Ukraine banking on European gas guarantees
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Loading... - Zahra Botros
- 24 Jan 2023
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Country has to deal with quickly declining Russian gas transit to Europe and low gas reserves in storage during the rest of this winter season
Ukrainian hopes of passing this winter heating season without domestic gas rationing have been boosted by arrangements with the European Bank for Reconstruction & Development (EDR) and major European energy companies.
Assurances were sought by state gas importer and distributor Naftogaz Ukrainy after Russian gas giant Gazprom reduced European gas transit supplies across the country further this week.
Naftogaz executive chairman Alexei Chernyshov said in a social network post that his meetings in Davos, Switzerland had led to the company securing access to financing from EBRD and banks in Norway, US, Germany, France and the UK, to purchase and import gas into the country.
Chernyshov said Naftogaz has also “reserved” gas with leading energy companies in the volume that is sufficient to “successfully complete this winter season”.
Storage low
According to Gas Infrastructure Europe, an association representing the interests of European gas infrastructure operators, Ukraine has seen a 30% reduction of available gas to about 7 billion cubic metres in its underground storage in the period between 1 November 2022 by 19 January 2023.
The country’s vast storage facilities are now just 23% full against current levels of 89% and 77% for gas storage in Germany and France, and the average of 80% for the whole Europe.
Chernyshov has not specified the volume of gas that Ukraine will need to import, but Ukraine’s President Volodymyr Zelensky told the European Council in December that the country may require to bring in at least 2 billion cubic metres before end of June. Read More…
