27 Mar 2022 11:13

Sunday booking for gas transit via Ukraine keeps at maximum level, Gazprom exporting gas as scheduled

MOSCOW. March 27 (Interfax) - The Ukrainian gas transport corridor's utilization ratio remained at the maximum level in line with a long-term contract of 40 bcm per annum, or 109 mcm per day, on Sunday.

European customers have increased bookings for supplies of Russian gas from Gazprom following the surge in prices owing to the sanctions being imposed against Russia. The current price of gas at the Dutch TTF gas hub is $1,100 per thousand cubic meters. This implies that taking gas under the contract with Gazprom still has price advantage over purchases on the spot market, as the month forward price of the most expensive contract is approximately $930 for thousand cubic meters in March.

Gazprom is supplying Russian gas for transit via Ukraine in the regular mode, in line with the bookings of European customers at 109.6 mcm on March 27, Gazprom spokesperson Sergei Kupriyanov told reporters.

According to data provided by the Gas Transmission System (GTS) Operator of Ukraine, nomination for March 27 was at 109.6 mcm, compared to a 109.5 mcm nomination for March 26.

The Yamal-Europe gas pipeline transporting gas via Belarus and Poland to Germany was put in the reverse mode last week and has since continued working in this direction. Gas shipments from Germany to Poland, i.e. a withdrawal of additional gas volumes from major European hubs, are another element of currently high gas prices in the EU.

With the spring coming to Europe, air temperature continued to rise. Outside temperatures were 4 degrees higher on average in Europe this week compared to the previous week. However, the next week falling on the end of March and start of April is expected to be much cooler, with frosty nights, which will give a new support to gas prices.

Europe is continuing to see a decline in electricity produced by wind power generation, although this is exactly the sector that should help the region reduce its reliance on Russian fuels. The unpredictability of the dynamics of renewable power sources is a catalyst of rising demand for gas and, consequently, prices for the commodity. Wind turbines accounted an average for 17% of EU power generation last week (March 14-20), and this indicator averaged at 12% on Monday-Saturday this week.