Gazprom to pump around 42 mcm of gas via Ukraine on Fri, unchanged from previous day
MOSCOW. June 10 (Interfax) - Ukraine's Gas Transport System Operator (GTSOU) has accepted a request from Gazprom for Friday to transport 41.9 million cubic meters of gas through the country, with volume unchanged from Thursday, data from GTSOU indicate. Capacity was requested only through one of two entry points into Ukraine's Gas Transport System, the Sudzha metering station. A request was not accepted through the Sokhranivka metering station.
"Gazprom is supplying Russian gas for transit through the territory of Ukraine at the volume confirmed by the Ukraine side via the Sudzha metering station at 41.9 million cubic meters on June 10, with no booking via the Sokhranivka metering station " Gazprom spokesman Sergei Kupriyanov told reporters.
GTSOU has declared a force majeure in regard to accepting gas for transit through Sokhranivka, 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 Sokhranivka and Novopskov stations all this time and continue to do so; transit through Sokhranivka was ensured in full, and there were and are no complaints from counterparties, the Russian gas giant has said.
Ukraine has suggested shifting transit volumes from Sohranivka to Sudzha, but Gazprom asserts that this is technologically impossible based on the Russian flow scheme. Also, the distribution of volumes is prescribed in the agreement on cooperation from December 30, 2019.
At the same time, the Ukrainian side insists that the payment should still be made on the basis of the estimated volume of transportation of the long-term contract stipulating 109 million cubic meters per day under the "pump or pay" rule. Gazprom, in turn, points out that Ukraine has reduced transit capacity by a third. Naftogaz Ukraine said it is now being underpaid for transit and is talking about appealing for arbitration.
EUROPEAN MARKET
The European gas market is continuing to follow the strategy of price optimization of supplies. Most contracts with Gazprom are on a "month ahead" index (its value for June could be about $970/1,000 cubic meters). Prices on the spot market are at a level of $900 (even taking into account some growth after an accident at a U.S. LNG plant), so buyers are looking for cheaper alternatives here.
Renewable electricity production in Europe is showing a downward trend this week. Whereas on Monday wind power generation accounted for 14% of the energy mix across the EU, on Wednesday and Thursday it was already 11%, according to the WindEurope association (in the week from May 30 to June 5 it averaged 9%).
