Ukraine has offered “to Gazprom” its underground storage

The head of the Operator GTS of Ukraine Sergey Makogon said in its underground storage can take the Russian gas “Gazprom”.

Украина предложила «Газпрому» свои подземные хранилища

As the Wave passes, he said this in an interview with Russian RBC.

It is noted that in 2020 you may also upload up to 10 billion cubic meters, and Gazprom may be the volume to use.

“You just need to sign a standard storage agreement, and the tariffs have establishes an independent regulator, and they are the same for all customers (about $ 10 for cycle storage of 1 thousand cubic meters). Ukrainian underground storage facilities 3-5 times cheaper than in Europe, so the demand and economic viability is,” said Makogon.

According to him, “Gazprom” there is an obvious business case for the use of Ukrainian UGS. He stressed that the company is not fully utilizing paid capacity transit, as 178 million cubic metres per day is used only an average of 150 million cubic metres to 28 million cubic meters per day is payable, but is not used.

“So it makes sense to consider whether to use the full capacity paid for import of gas to Ukraine, part of the amount you can pay for transit, and the remainder to be imported for storage. In the winter, when demand in the EU will grow, you can raise gas from underground storage facilities and send to the EU”, — said the head of the Operator GTS.

Makogon also expressed confidence that the situation could get worse by the autumn, when the European UGS can be completely filled. “Gazprom” in this case, you will need to reduce the transit, but to pay it in full. However, he noted that such temporary storage could be a win-win solution, moreover, Ukraine is open for negotiations.