In 2020, the transit of gas to Europe by the Ukrainian GTS amounted to 55.8 billion cubic meters, gas transportation from Europe to Ukraine amounted to 15.9 billion cubic meters

January 2, 2020, Kyiv – In 2020, the Ukrainian GTS Operator (OGTSU) has transited to Europe 55.8 billion cubic meters of gas (-38% compared to 2019). The volumes of gas transported from Europe to Ukraine for the same period amounted to 15.9 billion cubic meters (+ 12% compared to 2019).

The key factors in reducing transit volumes to Europe were the launch of new gas pipelines bypassing Ukraine, as well as a decrease in demand for natural gas in the EU and significant gas reserves in European UGSF.

The Transit Agreement with Gazprom provides for the capacity booking in the amount of 65 billion cubic meters (178 million cubic meters/day) in 2020 and 40 billion cubic meters (110 million cubic meters/day) in 2021-2024. Last year, transit was 14% less (or 9,2 million cubic meters less) than provided for in the Agreement. At the same time, Gazprom pays for the entire volume of booked capacity in accordance with the terms of the Agreement according to the contract, which provides for the condition “take-or-pay”.

The average daily transit volume since the beginning of the year amounted to 153 million cubic meters per day, and in December it increased to 183 million cubic meters per day due to additional rebooking through of capacities the auction platforms for gas transportation to European countries.

In the western direction, 51.9 billion cubic meters of gas were transported (-32%). In particular, to Poland 3.8 billion cubic meters, Slovakia 38.5 billion cubic meters, Hungary 9.6 billion cubic meters.

In the southern direction the transit amounted to 39 billion cubic meters (-70%), 0,9 billion cubic meters of which to Romania and 3,0 billion cubic meters – to Moldova.

Gas transportation from Europe to Ukraine at the request of OGTSU customers, amounted to 15,9 billion cubic meters, which is 12% more than in 2019 and 27% more than the average indicators of the corresponding periods in 2016-2018.

In total in 2020, imports from Slovakia amounted to 10.2 billion cubic meters (+ 11% compared to the same period last year), from Hungary almost 4.2 billion cubic meters (+ 14%), from Poland almost 1.5 billion cubic meters (+3%). In particular, 45% was imported by the backhaul, which first became available in early 2020.

Since the beginning of the year, 10,1 billion cubic meters of imported volumes have been injected to underground storage facilities for storage in the “customs warehouse” mode. 60% (or 6,1 billion cubic meters) of which came in the “short-haul – customs warehouse” mode and 40% (4,0 billion cubic meters) in the “border customs warehouse” mode. In November, the phase of active gas withdrawal from the customs warehouse and its further transportation to the EU countries began (0,3 billion cubic meters)

In total, during the period from January to December, 82 traders booked gas transportation from the EU to Ukraine, including 52 Ukrainian companies and 30 foreign ones. More than fifty Companies, most of which are non-residents, have used the services of a short-haul and “customs warehouse”.

“In 2020, the GTS Operator of Ukraine has 100% fulfilled its key tasks – provided reliable gas transportation for Ukrainian consumers and fully fulfilled its obligations for gas transit to the EU and Moldova, commented General Director of OGTSU Sergiy Makogon. In the first year of operation of the independent GTS Operator of Ukraine, we managed not only to perfectly cope with operational challenges, but also to make a significant breakthrough in the domestic gas market. Thus, for the first time in the history of the Ukrainian GTS in 2020 gas transit took place not only for Gazprom, but also by order of other international companies, for the first time the transit has been carried out in the Trans-Balkan direction, the backhaul has been implemented, the transition to a transparent mechanism for the capacity distribution on auction platforms and new services were introduce which are in demand among Ukrainian and international clients. Thanks to this, the GTS Operator today is a reliable support for the state, and the Ukrainian GTS is an integral and important part of the energy stability and security of Europe”.