Gas offtake from European storage facilities remains at high level; Gazprom requests 42.4 mcm for transit via Ukraine
MOSCOW. March 3 (Interfax) - Europe is actively offtaking gas reserves from the underground gas storage (UGS) facilities and the tanks at the LNG receiving terminals.
This week's weather has been more severe than during the previous two weeks, with the preliminary weather forecast for March 6-12 promising even lower temperatures.
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, and the previous day it was 42.4 mcm of gas, data from the 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 March 3, with booking via the Sokhranovka metering station declined," Gazprom spokesman Sergei Kupriyanov told reporters.
The 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 that there are no grounds for the force majeure or obstacles to continuing operations as before.
EUROPEAN MARKET
Wind turbines provided 16% of the region's electricity needs last week, and the figure was 11.3% on Thursday, according to WindEurope.
The day-ahead contract for today at the Dutch TTF gas hub in the Netherlands closed at $524 per thousand cubic meters.
A split between LNG prices in Asia and those in Europe has noticeably returned. In Asia, the most expensive futures contract for April on the JKM Platts index is $521 per thousand cubic meters, and futures under the LNG North-West Europe Marker are $477 per thousand cubic meters.
EUROPEAN INVENTORIES
Current inventory levels in Europe's underground gas storage (UGS) facilities have declined to 60,62%, which is 22 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe.
Inventories contracted 0.52 percentage point during the gas day for March 1.
The relatively mild weather in October, November and January, in addition to the continent's austerity measures, have resulted in the level of inventories in UGS facilities being at an all-time high for this time of year since monitoring began, thereby underpinning the authorities' confidence in getting through the winter in good shape.
European LNG terminals operated at 63% capacity in January, and the figure was 74% on the first day of March.
U.S. INVENTORIES
The state of gas in UGS facilities in the United States is of increasing importance for the global market, and the country is actively increasing gas exports, primarily to Europe.
Inventories decreased 2.3 billion cubic meters for the latest reporting week ending February 24, 2023, which is 33.3% less than the usual offtake for this time of the year.
The current level of inventories is around 44%, which is 19 percentage points higher than the average figure for the past five years, according to the U.S. Energy Department's Energy Information Administration. The current level of inventories is close to the highest figure for the past five years.
Freeport LNG, the United States' largest LNG plant, has announced reopening two of its three liquefaction lines, thereby reducing the excess gas on the U.S. market and boosting supplies of LNG to the global market.
