Natural gas transit across Ukraine to European countries has amounted to 50 billion cubic meters since the beginning of the year

December 4, 2020, Kyiv – For 11 months of 2020- Gas TSO of Ukraine has transited 50.1 billion cubic meters of gas. This is 38% less than for same period last year (81.5 bcm).

The main reason of the reduction of transit volumes as compared to the previous year is the launch of new gas pipelines bypassing Ukraine, used to transport Russian gas to Europe. As well as a certain decrease in demand for the blue fuel in the EU and significant gas stocks in European underground gas storage facilities. Consequently, all of this together has affected the contractual volumes of services ordered from Gas TSO of Ukraine*.

The average daily transit volume amounted to 150 million cubic meters per day since the beginning of the year, rising to 175 cubic meters per day in November due to additional orders made through capacity booking platform.

It should be noted that in November, traders started withdrawing their gas stocks from the customs warehouse in UGSF, hence OGTSU transported additional 153 million cubic meters (mcm) of natural gas to the EU, namely: 114 mcm to Hungary and 39 mcm to Poland.

“In November this year, for the first time, the significant volumes of gas have been transported across Ukraine to the EU, not only due to the orders from Gazprom, but also for our European customers that use short-haul and customs warehouse services. This means we are trusted, our services are competitive and Ukraine is a reliable partner for the EU. Also, such proactiveness proves that we are confidently heading towards the creation of a regional gas hub in Ukraine,” commented Sergiy Makogon, General Director of OGTSU.

Gazprom pays in full for the entire volume of booked capacities. Whereas OGTSU, for its part, fulfils all daily nominations and effectively ensures uninterrupted gas transmission to the EU and Moldova.

A total of 46.8 billion cubic meters of gas (-34%) was transited to the west. In particular, to Poland – 3.5 bcm, to Slovakia – 34.7 bcm, to Hungary – 8.6 bcm.

In the south direction, the transit amounted to 3.3 billion cubic meters (-73%). Of this amount some 0.7 bcm – to Romania and 2.6 bcm – to Moldova. The decrease of the transit via this route is related to the launch of Turkish Stream in January 2020, through which gas is transported from Russia to Turkey and from there to the countries of the Balkan Peninsula.

* The Transit agreement between NJSC Naftogaz of Ukraine and Russia’s OJSC Gazprom was concluded at the end of 2019 for a period of five years. It provides for Gazprom booking transit capacities in the amount of 65 billion cubic meters (178 million cubic meters / day) in 2020 and some 40 billion cubic meters per year (110 million cubic meters / day) in 2021-2024.