Gazprom transit via Ukraine continues with 42.3 mcm of volume
MOSCOW. Aug 9 (Interfax) - The GTS Operator of Ukraine accepted an application for transportation on Wednesday from Gazprom totaling 42.3 mcm, the Ukrainian company said. The figure is unchanged from Tuesday. Capacities were announced for only one of the two entry points to the country's GTS, the Sudzha gas measuring station. The application was not accepted for the Sokhranovka station.
The published nomination is technically the maximum possible amount for this direction, considering all the restrictions on the Ukrainian side.
Gazprom representative Sergei Kupriyanov told reporters "Gazprom is supplying Russian gas for transit through Ukraine in the amount confirmed by the Ukrainian side through the Sudzha GIS, 42.3 mcm on August 9. The application for the Sokhranovka" was rejected."
The Ukrainian GTS operator has declared force majeure for the acceptance of gas for transit through Sokhranovka, as it allegedly cannot exercise operational and technological control over the Novopskov compressor station. Sokhranovka used to handle transit of more than 30 mcm per day. Gazprom believes there are no grounds for force majeure, just as there are no obstacles to continuing to work as was done previously.
EUROPEAN MARKET
Wind generation in Europe fell slightly on Tuesday after updating a 4-month high on Monday. Windmills provided 23% of the region's electricity needs on August 8, according to the WindEurope association. In August 2022, their contribution was 10%, and 14% in July 2023.
The spot gas price in Europe remained almost unchanged on Tuesday. A day-ahead delivery contract at the TTF hub in the Netherlands closed at $334 per thousand cubic meters.
There is a noticeable gap in LNG prices in Asia compared to Europe. September futures on the JKM Platts (Japan Korea Marker, which reflects the spot market value of cargo shipped to Japan, South Korea, China and Taiwan) is trading at $392; futures for LNG supplied to NW Europe (LNG Northwest Europe Marker) are at $344.
EUROPEAN INVENTORIES
Europe continues pumping gas into storage facilities. The current level of inventories has reached 87.71%, which is 14 percentage points higher than the average for the same dates over the past five years, Gas Infrastructure Europe said.
During the gas day on August 7, reserves were increased by 0.3 percentage points. Injection rates are still noticeably below the usual levels over the past five years. However, if this intensity is maintained throughout the summer, by the end of September it will be possible to achieve the target level of 90% storage capacity.
In July, European LNG terminals operated at an average capacity of 56%; since the beginning of August, that level has dropped to 48%. August LNG imports could be the lowest on a daily basis since 2021.
U.S. INVENTORIES
The status of U.S. UGS facilities is becoming increasingly important as the country ramps up exports.
The country continues with injection season. During the next reporting week, gas reserves will have increased 0.4 bcm, 50% less than the standard volume for this time of year.
The current inventory level in the country is 62%, which is 12 percentage points higher than the average over the past five years, the US Energy Information Administration (EIA) says.