EU reserves in UGS facilities reach all-time high; Gazprom requests 42.4 mcm for transit via Ukraine
MOSCOW. Aug 30 (Interfax) - The level of reserves in European underground gas storage (UGS) facilities has reached an all-time high for the corresponding date since Gas Infrastructure Europe began observing in 2011, and the level continues to grow.
Injection has been proceeding at a rather modest pace since exceeding 92% capacity in the storage tanks.
France, Romania, and Latvia, last year's outsider, which still lag the norm of 90% at the beginning of the offtake season, are actively continuing to form reserves for each respective country.
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 figure was 42.4 mcm yesterday, data from the GTSOU show.
The published nomination is technically the maximum possible flow in this direction, given all of the restrictions imposed by the Ukrainian side.
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 August 30, 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 an average of 10% of the region's electricity needs yesterday, within the long-term norm, with the figure having been 10% in August 2022 and 14% in July 2023, according to WindEurope.
The day-ahead contract for today at the Dutch TTF gas hub in the Netherlands closed at $396 per thousand cubic meters, with the spot price having fallen 9% on Tuesday.
There is a markedly stable split between LNG prices in Asia and those in Europe. In Asia, the most expensive futures contract for October on the JKM Platts index is $478 per thousand cubic meters, and futures under the LNG North-West Europe Marker are $432 per thousand cubic meters.
EUROPEAN INVENTORIES
Europe continues the gas-injection season into underground gas storage (UGS) facilities. Current inventory levels in Europe's UGS facilities are 92.65%, which is 12 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe.
Inventories increased 0.12 percentage points during the gas day for August 28, the lowest amount since late April, with the pace still markedly lagging the usual injection levels over the past five years. Nevertheless, reserves have already reached well above the target level of 90% storage capacity.
European LNG terminals operated at an average capacity of 56% in July, and they have averaged just 50% since the beginning of August. LNG imports could be the lowest since 2021 on a daily basis in August.
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.
The U.S. continues the season for injecting gas into UGS facilities. Inventories rose 500 million cubic meters for the latest reporting week, which is 66.7% lower than the typical volume for this time of the year.
The current level of inventories is 64%, which is 9 percentage points higher than the average figure for the past five years, according to the U.S. Energy Department's Energy Information Administration.