Gazprom requests 42.4 mcm for transit via Ukraine, same as previous days
MOSCOW. Oct 19 (Interfax) - Gazprom's request on Wednesday for pumping Russian gas through Ukraine has not changed from the previous days and months.
UKRAINIAN TRANSIT
The Gas Transport System Operator of Ukraine, or GTSOU, has accepted a booking from Gazprom today to transport 42.4 million cubic meters of gas through the country, as 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 Sokhranovka 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 42.4 mcm on October 19, with booking via the Sokhranovka metering station declined," Gazprom spokesman Sergei Kupriyanov told reporters.
GTSOU has declared a force majeure with respect to acceptance of gas for transit through Sokhranovka, claiming that it cannot control the Novopskov compressor station. The route through Sokhranovka had provided transit of more than 30 mcm of gas per day.
Gazprom believes there are no grounds for the force majeure or obstacles to continuing operations as before.
EUROPEAN MARKET
European weather is forecast to transition from warm to cold weather as of today, and gas off-take from underground gas storage (UGS) facilities usually begins.
Wind turbines generated 14.6% of the EU's electricity on average on Tuesday, following over 20% on Saturday, Sunday, and Monday; 14.7% last week, and 19% the week before that, on October 3-9, according to data from WindEurope.
While the weather is still mild in Europe, the spot price is low - the day-ahead contract at the TTF hub in the Netherlands - and closed at $665 per thousand cubic meters, though this applies only to current supplies during the short period of mild weather. In Asia, the most expensive winter futures contract for February on the JKM Platts index is now $1,303.
The Nord Stream pipeline is completely shut down due to problems with equipment maintenance caused by sanctions. In addition, last week two strings of Nord Stream 1 and one of Nord Stream 2 depressurized near the Danish island of Bornholm.
European liquefied natural gas terminals have been operated at an average of 59% of capacity in September, as in August, rising to around 63% so far in October, data from Gas Infrastructure Europe indicate. LNG imports could reach 11.5 bcm in October, one of the highest figures ever.
EUROPEAN INVENTORIES
Europe continues to inject gas into underground gas storage facilities, with the average level of reserves reaching the targeted 80% at the end of August, since when the pace of injection has slowed. European storage typically transitions from net injection to net off-take around October 20.
Inventories in UGS facilities have risen to 92.37%, up 0.3 percentage points from October 16, the last reporting date, according to Gas Infrastructure Europe data. Off-take is rising along with injection at a ratio of 44% last week, with net off-take in the Netherlands - half of total EU off-take - and in Latvia, Poland, and Romania. Gas withdrawal is also high in Germany, but injection there is thus far higher.
Gas inventories in UGS facilities currently exceed 80% in Austria, Belgium, Bulgaria, the Czech Republic, Croatia, Denmark, France, Germany, Italy, the Netherlands, Poland, Portugal, and Spain, though Hungary and Latvia are lagging.
Gas stocks at the Incukalns UGS facility in Latvia are the lowest in the EU and are stuck below 55%. This UGS facility is responsible for reserve gas supplies to Estonia, Latvia and Lithuania, as well as Finland.
U.S. INVENTORIES
The situation with gas injection in the U.S. has improved. Air conditioners are being turned off and there is no immediate demand for heating, allowing more gas to be injected into UGS facilities. UGS facilities are filling also because the Freeport LNG terminal has halted exports following an accident and thanks to a stoppage at the Cove Point plant for scheduled maintenance that ended on October 18, after which more gas will again be exported.
The rate of injection increased during the last reporting week, with 3.5 bcm stored, up from 3.6 bcm in the previous week.
The current inventory level is around 67%, which is substantially below inventory at UGS facilities in Europe, and in Russia, which has over 90%.
UGS inventories in the U.S. are now only 8.4% above the five-year minimum, according to the U.S. Energy Department's Energy Information Administration. Current inventory lags 6% behind the five-year average.
