Reserves in European UGS facilities reach 100 bcm; Gazprom requests 42.2 mcm for transit via Ukraine
MOSCOW. Oct 20 (Interfax) - The volume of reserves in Europe's underground gas storage (UGS) facilities has reached 100 billion cubic meters of active gas, which could be assessed in various ways given the unprecedented shortage on the global market.
Experts allow for storage operators possibly off-taking part of the buffer - non-marketable gas in UGS tanks needed to maintain standard pressure - in addition to the active gas from the UGS facilities if an urgent need arises.
The region should move from injection to pure off-take in the coming days, with October 20 being the typical date of transferring from net injection, though temperatures this October have been unseasonably warmer than usual, with the transition actually occurring on November 4 back in 2013.
Gazprom's request on Thursday 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 Wednesday, 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 42.2 mcm on October 20, 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
Wind turbines generated 17.8% of the EU's electricity on average on Monday, Tuesday, and Wednesday, following 14.7% last week, and 19% the week before that, on October 3-9, according to data from WindEurope.
With the onset of colder weather in Europe, the spot price - the day-ahead contract at the TTF hub in the Netherlands - has reached $693 per thousand cubic meters. In Asia, the most expensive winter futures contract for February on the JKM Platts index is now $1,261.
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 62% so far in October, data from Gas Infrastructure Europe indicate. LNG imports could reach 11 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 93.65%, up 0.23 percentage points from October 18, the last reporting date, according to Gas Infrastructure Europe data. Over 100 bcm of active gas have accumulated in UGS facilities in absolute terms.
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, which could report reaching the required as of October 19, 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.