European gas traders profitable to store gas in Ukraine because of the low cost of storage and excess of available storage capacities.
Ukrainian underground gas storage (UGS) is considered as one of the main alternatives to avoiding the imminent crisis in the European market, gas storage. This is stated in the review of the energy Agency S&P Global Platts.
It is indicated that the occupancy rate of the European gas storages, made in early July, 80%, and by August can reach 100%. It’s two months earlier than usual maximum filling of gas storage facilities in Europe.
However, over the last five years in 2019 gas storage in the EU have been completely filled, but the peak occupancy occurred in November. The main reason for the oversupply of gas in storage the Agency calls unused gas due to low demand, pumped in 2019. In April 2020 the fullness of storage facilities accounted for a record 57%. Usually, in this period of the year the fullness of the lowest and fluctuated in the range of 20-40% in 2015.
According to analysts S&P Global Platts, there are two scenarios under which you will be able to avoid shortage of storage capacity of gas.
The first is the price of gas on the European market will continue to rise and gas will become more profitable to sell than to keep. The increase in gas prices in the EU were resumed in early may.
The second was to use the Ukrainian underground gas storage. Despite the fact that the gas pipeline from Slovakia to Ukraine often for scheduled maintenance, European gas traders are still profitable to store gas in Ukraine because of the low cost of storage and excess of available storage capacities.
We will remind, as of July 2, the volume of gas in underground storage facilities of Ukraine has already exceeded 20 billion cubic meters Next billion cubic meters was pumped for only two weeks.
It was also reported that this year in Ukraine is expected to record gas reserves. This forecast was made by the head of Naftogaz Andrey Kobelev.