Gas transit request via Ukraine for Tue at 49 mcm
MOSCOW. May 17 (Interfax) - Ukraine's Gas Transport System Operator (OGTSU) has accepted a request from Gazprom for Tuesday to transport 48.9 million cubic meters of gas through the country.
The request for Monday was initially 46.8 mcm, but by the end of the gas day it rose to 56.7 mcm.
The capacity was requested only through one of two entry points into Ukraine's Gas Transport System, the Sudzha metering station. Requests are not being accepted through the Sokhranovka metering station.
OGTSU declared a force majeure in regard to accepting gas for transit through Sokhranovka, citing the fact that it cannot control the Novopskov compressor station.
Gazprom believes there are no grounds for a force majeure or obstacles to continuing to operations as usual. Ukrainian specialists worked smoothly at the Sokhranovka and Novopskov stations all this time and continue to do so; transit through Sokhranovka was ensured in full, and there were and are no complaints from counterparties, the Russian gas giant has said.
Market
The European gas market is again showing signs of optimizing supplies. Most contracts with Gazprom are pegged to the month-ahead index, which could be above $1,100 per 1,000 cubic meters for May. Prices on the spot market, meanwhile, have already dropped to $990 as warmer weather arrives and politicians and the market accept the new system for paying for Russian gas. As a result, buyers are looking for a cheaper alternative on the spot market. Constantly revised bookings for gas transit are also pointing to flexible optimization of supplies.
Wind power contributed almost 17% of electricity generation across the European Union in the week from May 9 to 15. The figure dropped to 14% on Monday, data from WindEurope show.
New payment system
President Vladimir Putin signed a decree (No. 172) on March 31 on a "special procedure for foreign buyers' fulfilment of obligations to Russian suppliers of natural gas," under which payment for Russian pipeline gas supplied after April 1 to foreign counterparties specified in the decree must be made only in rubles.
Under this procedure, special "K" type ruble and foreign currency accounts are opened at the authorized financial institution, Gazprombank (GPB) , for foreign buyers. These accounts prohibit the suspension of transactions, freezing or debit of funds as part of foreign buyer's fulfillment of obligations that are not related to payment on contracts to supply natural gas. Foreign buyers pay for gas in the currency of the contract, which the bank then sells on the Moscow Exchange and transfers rubles to Gazprom . This is the point at which payment for the gas is considered to be completed.
If this condition is not met, gas supplies will be suspended. Further gas supplies are prohibited if the payment deadline for gas supplied under a contract has expired but the foreign buyer did not make the payment or made it in foreign currency, not in the full amount or not to the account at the authorized bank.
Russia has already suspended gas supplies to Poland and Bulgaria because they refused to comply with the new payment system.