Ukrtransgaz expects nonresidents to step up gas injection into Ukrainian underground storage in Aug-Sept

MOSCOW. July 24 (Interfax) - Ukrtransgaz expects nonresidents to step up injection of gas into underground gas storage (UGS) facilities in Ukraine in August-September, Ukrainian media reported, citing company head Roman Malyutin.

Nonresidents are now injecting gas in small amounts due to "certain specifics of the European market," but "[w]e expect that in August-September there will be the needed factors," Malyutin said in an interview posted on YouTube.

He said gas injection by nonresidents depends on many market factors, such as the spread, available resources, stability of LNG supplies and level of reserves in European storage, which is now at 82.9% and is expected to reach the target level of 90% in late August.

"We are holding a constant dialog with traders, responding to their questions and warnings. I think that most traders, like last year, will pump gas [into Ukrainian UGS], but what the volumes will be will depend foremost on market conditions," Malyutin said.

It was reported earlier that Ukraine had 10 billion cubic meters of natural gas reserves in UGS as of July 22. More than 2.5 bcm of gas has been pumped into storage since April 1. Ukraine plans to enter the 2024-2025 heating season with at least 13 bcm of gas reserves in UGS.

Ukrtransgaz, which is wholly owned by state company Naftogaz Ukraine, operates ten UGS facilities with combined design capacity of about 30 bcm.