Kiev expects preferential tariffs to increase gas amounts in underground storage facilities

MOSCOW. Feb 17 (Interfax) - It would be reasonable to offer the most preferential tariffs for non-residents storing their gas in Ukrainian underground storage facilities in order to improve the situation with gas amounts on condition of the priority right to sell this gas to Ukraine at market prices, former Ukrainian Energy Minister, Ukrainian Energy Assembly Council Chairman Ivan Plachkov said.

"I would propose preferential gas storage tariffs for non-residents in order to fill underground storage facilities and motivate them to bring their gas here," Plachkov told the Ukrainian press.

Ukraine's right to be the first to buy the gas at market prices if necessary should be the condition of preferential tariffs, he said.

Ukrainian media also quoted a statement by former head of the Gas Transmission System Operator of Ukraine Sergei Makagon, who referred to the AGSI European platform and said that Ukrainian underground gas storage facilities were less than 8% full: they contain 2.39 billion cubic meters of active gas, which amounts to 7.96% of their capacity. Makagon says this is 2.55 billion cubic meters less than on the same day last year.

"We should understand that when underground storage facilities are less than 10% full the capacity for taking gas from storages also falls considerably. The critically low gas reserves are forcing Naftogaz to urgently import up to 25 million cubic meters of gas per day. The imported gas price is almost twice higher than it was in summer, when Naftogaz decided not to import gas for making reserves," Makagon said.

He said earlier that Naftogaz or Ukrtransgaz were buying imported gas at UAH 28,000 to 29,900 per 1,000 cubic meters.

As reported, former Ukrainian Energy Minister Olga Buslavets said in early February that Ukraine had 7.8 billion cubic meters of gas in its underground storage facilities, which was 24% less than last year (including 0.08 billion cubic meters of gas owned by non-residents).

She said Ukraine would have to import 2 billion to 3 billion cubic meters of gas in 2025 to compensate for the shortage.

Energy Minister German Galushchenko said for his part that Ukraine would have to import at least 1 billion cubic meters of gas in 2025. He also said that Ukraine would discuss additional financing with foreign partners to pay for the imports and allowed for taking gas as a grant.