Gazprom bookings for transit via Ukraine still at peak on Tues, gas being delivered for export as scheduled

MOSCOW. March 29 (Interfax) - Pumping via the Ukrainian gas-transit corridor on Tuesday remains at the same peak level, 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 Dutch TTF gas hub is $1,152 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 the regular mode in accordance with the bookings of European consumers at 109.5 million cubic meters on March 29," Gazprom spokesman Sergei Kupriyanov told reporters.

According to the data of the Gas Transmission System (GTS) Operator of Ukraine, nomination for March 29 is 109.5 million cubic meters, and bookings for March 28 also totaled 109.5 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. A small nomination of 90,000 cubic meters per hour was received for gas pumped directly on Tuesday, but much less than for pumping in reverse. 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.

Colder temperatures are expected to set in in Europe this week. Average temperatures will be 7 degrees below the week of March 14-20; with significant subzero temperatures at night, which will provide new support for gas prices.

Wind power generation, which is intended to help the region reduce its dependence on fuel from Russia, continues to fall. The unpredictable behavior of renewables is a catalyst for rising gas demand and - consequently - gas prices. In the week from March 14 to 20, wind power plants provided an average of 17% of EU power generation, while in the week March 21-28 the figure was 12%; it was 11.9% on Monday, according to WindEurope data.