Foreign traders are storing 2.4 billion cubic meters (bcm) of gas in Ukraine’s underground gas storage facilities (UGS), Ukraine’s Energy Ministry said on Oct. 16.
European companies are making use of the attractive storage tariffs offered by Ukraine’s state-owned oil and gas company Naftogaz.
Volumes belonging to foreign traders increased by 200 million cubic meters (mcm) in the last ten days.
“This activity demonstrates the full integration of the Ukrainian gas infrastructure into the European one. This is an important step towards creating an energy hub in Ukraine and making Europe independent of Russian gas,” Energy Minister Herman Haluschenko said.
The Naftogaz Group oversees Europe’s largest underground gas storage (UGS) facilities capable of holding 31 bcm.
The company has made 10 bcm available to non-resident traders.
Foreign companies were hesitant to store gas in Ukraine last year due to Russian aggression. However, they have returned this year as Europe’s storage facilities are at full capacity.
The gas transmission system operator of Ukraine (GTSOU) transported over 3 bcm of gas from the EU and Moldova to Ukraine between April and October 2023. In the same period last year, the GTSOU only transported 414 mcm.
In total, Ukraine has around 16 bcm of gas in its storage facilities, Naftogaz CEO Oleksiy Chernyishov told the Kyiv Independent on the sidelines of the Kyiv International Economic Forum on Oct. 12.
Ukraine will be fully self-reliant this year without the need to import gas volumes, according to Naftogaz.
Dominic Culverwell
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