Europe storing as much gas as possible, Gazprom transit request via Ukraine 41.6 mcm
MOSCOW. Aug 10 (Interfax) - Europe is trying to inject as much gas as possible into underground storage for the winter, even with market supply severely limited.
This can, however, only be done by limiting current gas consumption and through the wider use of other less green fuels like coal and oil.
The request for transit of Russian gas through Ukraine on Wednesday was little changed from previous days and months.
Ukrainian transit
Ukraine's Gas Transport System Operator (GTSOU) has accepted a request from Gazprom for Wednesday to transport 41.6 million cubic meters of gas through the country, down slightly from 42.1 mcm on Tuesday, data from GTSOU show.
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 41.6 million cubic meters on August 10, with booking via the Sokhranivka metering station declined," Gazprom spokesman Sergei Kupriyanov told reporters.
GTSOU declared a force majeure in regard to accepting gas for transit through Sokhranivka, claiming that it cannot control the Novopskov compressor station. Ukraine also said that if gas continued to be fed from Russia to the Sokhranivka station, amounts would be reduced accordingly at the exit points from Ukraine's gas transport system. The route through Sokhranivka provided transit of more than 30 mcm of gas per day.
Gazprom believes there are no grounds for force majeure or obstacles to continuing to operations as before.
European market
Wind plants generated 11.3% of the EU's electricity last week, falling to just 9% in the first two days of this week, data from WindEurope show. The weather forecast for Europe is sunny and only light breezes, with temperatures set to rise above 30 degrees by the end of the week, meaning increased use of electricity for air conditioning, low wind power generation and reduced gas injection into underground storage.
Europe is continuing to inject gas into underground gas storage (UGS) facilities, where stocks now stand at 72.4%, up by 0.39 percentage points from the last reporting date, August 8.
Data about the state of UGS, levels in which are now regulated by the law, have become one of the most important economic and political indicators for Europe, reflecting EU leaders' ability to ensure energy security.
Europe imposed tight regulation of the use of UGS this year. Reserves are supposed to be at least 80% of UGS capacity by the start of the 2022 offtake season and increase to 90% in subsequent years.
LNG regasification terminals have been operating at 64% capacity in August, compared to July's average of 69%, when peaks were as high as 76%, according to Gas Infrastructure Europe data. This was primarily due to the shutdown of the large Adriatic LNG terminal in Italy for almost the whole month. As a result, Italy's LNG imports fell twofold compared to July levels. Spain and Greece also slowed their LNG imports.
Pumping via the Nord Stream pipeline (NS1) from Russia to Europe fell has fallen to 33 mcm per day. At full capacity, NS1 can pump up to 167 mcm of gas per day, but capacity has been falling due to disruptions in the maintenance schedule for compressor equipment at the Portovaya compressor station that feeds the pipeline. It has gas pumping turbines from Rolls-Royce, whose gas turbine business was subsequently acquired by Germany's Siemens.
The delays are due to sanctions that Canada imposed against Gazprom, as a result of which one turbine was not returned to Russia on time from Siemens Energy's service center in Montreal. Meanwhile, the time has come for maintenance on other turbines, both due to them reaching the end of their operating period between repairs and due to breakdowns.
Spot prices for gas in Europe with Nord Stream compressors out of action are holding above $2,000 per 1,000 cubic meters. Prices in Asia are rising on the back of prices in Europe. The most expensive January futures on the JKM Platts (Japan Korea Marker) index, which reflects spot market prices for gas delivered to Japan, South Korea, China and Taiwan, are now trading at $1,600.