LNG inflows to Europe reach new records in April, Gazprom request for transit via Ukraine grows to 39.8 mcm
MOSCOW. May 2 (Interfax) - LNG inflows to the European market in April 2023 reached new all-time highs. LNG terminals dispatched 12.073 bcm (equivalent to 9.3 million tonnes) into the gas transport network, Gas Infrastructure Europe said. The previous all-time high was logged in December 2022 at 11.9 bcm.
UKRAINIAN TRANSIT
The Gas Transport System Operator of Ukraine, or GTSOU, has accepted a booking from Gazprom today to transport 39.8 million cubic meters of gas through the country after a figure of 37 mcm over the weekend.
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 39.8 mcm on May 2, 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 generation in Europe remains at a modest level. Last week, wind turbines supplied 13% of the region's electricity needs; on Monday, their contribution was about the same (12.7%), according to WindEurope.
Spot prices continued declining slightly. The day-ahead contract for today at the Dutch TTF gas hub in the Netherlands closed at $437 per thousand cubic meters.
A split between LNG prices in Asia and those in Europe is widening. In Asia, the most expensive futures contract for June on the JKM Platts index is $412 per thousand cubic meters, and futures under the LNG North-West Europe Marker are $387 per thousand cubic meters.
EUROPEAN INVENTORIES
Europe is continuing gas injection into underground gas storage (UGS) facilities. Current inventory levels in Europe's UGS facilities are 59.6%, which is 20 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe.
Inventories increased 0.31 percentage points during the gas day for April 30, with April's pace markedly lagging the usual injection levels over the past five years.
Gazprom warns that, "Replenishing gas reserves in storage facilities could be a non-trivial task for European companies. This will be very difficult to do, given the politically motivated decisions aimed at refusing to import Russian pipeline gas. Competition for LNG will have a big effect on the volumes of gas available on the European market."
European LNG terminals operated at an average capacity of 58% in March owing to a strike at French terminals, and the load has been 66% in April thus far. The bulk of French terminals operated by Elengy are gradually returning to service.
US 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.
Freeport LNG, the United States' largest LNG plant, has announced reopening all three liquefaction lines, thereby reducing the excess gas on the U.S. market and boosting supplies of LNG to the global market.
The U.S. began the gas injection season at UGS facilities about a week later than usual.
Inventories rose 2.2 billion cubic meters for the latest reporting week, which is about double the usual figure for this time of the year.
The current level of inventories is around 42%, which is 22 percentage points higher than the average figure for the past five years, according to the U.S. Energy Department's Energy Information Administration.