31 Mar 2022 11:25

Transit bookings via Ukraine at peak on Thursday, Gazprom supplying gas for export in regular mode

MOSCOW. March 31 (Interfax) - Pumping via the Ukrainian gas-transit corridor on Thursday 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 $1,344 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 31," Gazprom spokesman Sergei Kupriyanov told reporters.

According to the data of the Gas Transmission System (GTS) Operator of Ukraine, nomination for March 31 is 109.5 million cubic meters, and bookings for March 30 totaled 109.5 million cubic meters.

Gas actually flowing via the Yamal-Europe pipeline, through Belarus and Poland to Germany, resumed pumping in the forward direction at the entrance to the GTS of Germany last night. Gazprom booked significantly additional pumping capacity of 30% during last night. The pipeline was pumping forward during the first several hours of the new gas day. Bookings for March 31, forward and reverse, also add up favorably in the forward direction from Russia to Germany.

Temperatures this week in Europe are substantially cold, and should average 7 degrees lower than last week, with significantly chilling temperatures during the night, and gas prices reacting accordingly.

The decline in electricity generation because of wind power has been continuing in Europe, and this should assist the region in reducing its dependence on fuel from Russia. Wind farms provided an average of 12% of the electricity generation in the European Union from March 21 to 27, and only 10% during the first three days of the new week, according to data from the WindEurope association..