The results of 2018: gas industry

 

Ukrainian gas sector showed productivity in 2018 with a great amount of records and wins.

This year Ukraine:

  •  won against Gazprom  in the Stockholm arbitration court.

Thus, thanks to the victory, Naftogaz brought 2.56 billion dollars to the country. At the end of the year Ukraine actually received 2.1 billion dollars, Naftogaz plans to receive the remaining amount by arresting the assets of a Russian company in European countries.

  • imported 10.6 billion cubic meters of gas (24.8% less compared to 2017).

Counteractants of Ukraine in gas import questions became Slovakia (61% of the total volume), Hungary (32%) and Poland (7%).

  • produced 20.9 billion cubic meters of gas (0.3% more).

State-owned Ukrgazvydobuvannya is still the largest gas production company of Ukraine. It produced 15.4 billion cubic meters (which is the record high for 25 years). Smaller companies also forged ahead - Smart Energy increased production by 31% compared to last year, Ukrnaftoburinnya planned such an increase next year.

  • pumped into storage 9.8 billion cubic meters. m of gas (6.5% more).

Pumping into underground gas storage facilities is also a last year record. Over the past 6 years, Ukraine filled storage facilities to a record level (17.1 billion cubic meters) by the start of the heating season.

  • extracted from storages 10.6 billion cubic meters (65.6% more).

In 2018, there were a number of reasons that caused high gas extraction rates. Firstly, the winter period was quite long and cold. Secondly, Ukrtransgaz was forced to pump out gas from underground storage facilities to maintain the necessary pressure in gas pipelines for transit to Europe, which was caused by incorrect actions of Gazprom.

  • transited 86.27 billion cubic meters (7.2% less).

Transit volumes decreased by more than 6.5 billion cubic meters. Also the active phase of construction of the Nord Stream – 2 began in 2018, which could deprive Ukraine of the privileges of a major gas transit to Europe.

 2018 was also marked by important events in terms of the transparency of the gas sector. Oil and gas auctions were held for the first time for the right to develop fields; it was opened an access to some databases related to geological information; as well as many other legislative changes regarding gas production, thanks to which Ukraine hopes to attract foreign investors.

It is also important to note a moment of increasing gas prices for the population by 23.5% (up to 8.550 UAH/thousand cubic meters), which initiated the IMF and adopted the Ukrainian government. As a result, the price of heat energy from January 1, 2019 increased by an average of 18%.

The price of gas for industrial consumers in Ukraine was 9.019 UAH/thousand cubic meters in January 2018 and December closed the year with the price of 11.152 UAH/thousand cubic meters.

Read also

Gas reserves in European UGS
Gas production by companies
Ukrainian gas sector results (1st quarter of 2019)