26 Mar 2022 10:36

Transit bookings via Ukraine at peak on Sat, Gazprom supplying gas for export

MOSCOW. March 26 (Interfax) - Pumping via the Ukrainian gas-transit corridor remains at the same peak level on Saturday, corresponding to the volumes of the long-term contract of 40 billion cubic meters per year, or 109 million cubic meters per day.

European buyers have increased bookings for supplies of gas from Gazprom following the sharp rise in prices owing to the sanctions being imposed against Russia. The current price of gas at the main European TTF gas hub is $1,100 per thousand cubic meters, implying that off-take per contract with Gazprom - the most expensive month-ahead contract in March is around $930 per thousand cubic meters - remains a better deal than buying spot.

Gazprom is supplying Russian gas for transit through the territory of Ukraine in normal mode in accordance with the bookings of European consumers at 109.5 million cubic meters on March 26, Gazprom spokesperson Sergei Kupriyanov told reporters.

According to the data of the Gas Transmission System (GTS) Operator of Ukraine, nomination for March 26 is 109.5 million cubic meters, and bookings for March 25 totaled 105.8 million cubic meters.

The Yamal-Europe gas pipeline, which pumps gas through Belarus and Poland to Germany, switched to reverse mode last week and has been pumping in this direction since then. Gas supplies from Germany to Poland, meaning off-take of additional volumes from the main European hubs, are another component of the current high prices in the EU.

Temperatures continue to rise in Europe as spring approaches, and this week should average 4 degrees warmer than last week according to the forecast. However, next week, which is the end of March and beginning of April, is expected to be considerably colder.

The contribution of wind generation to the energy balance of Europe averaged 17% for the week of March 14 to 20; on Monday, it dipped to 13.8%; and on Tuesday, it dipped further to 11.3%, according to data from the WindEurope association. Light winds are expected later this week, thereby reducing electricity generation from renewable sources and implying growth in demand for gas and prices.