Ukraine significantly increased gas purchases in Europe in 2019

Ukrainian gas companies increased gas purchases with supplies from Poland, Hungary and Slovakia in 2019 by 34% compared to 2018, to 14.2 billion m3. Pumping of this energy carrier from Slovakia increased most significantly – by 42%, to 9.1 billion m3.

Gas imports to Ukraine from Poland doubled last year, increasing to 1.4 billion m3, while from Hungary it grew by 7% to 3.7 billion m3.

At the same time, Ukraine, represented by Naftogaz or other importers, has not bought natural gas from Gazprom for more than 1,500 days (since November 26, 2015). Ukraine only receives Russian gas from Gazprom for transportation to Europe, and also acquires volumes that have been transported through the Ukrainian gas transmission system in reverse mode from neighboring EU countries (Slovakia, Poland and Hungary).

At the end of December and in the first days of January, information was received that some Ukrainian companies would be able to purchase natural gas in Russia to provide their enterprises with no resale rights, but so far no agreements have been reached and concrete contracts have been signed.

The volumes of gas purchased by Ukrainian importers in the EU countries were mainly used for pumping into underground gas storages and for use during the heating season. In total, in 2019, 13.1 billion m3 of gas was pumped into the UGSF of Ukraine, which is 33.7% more than in 2018.

At the same time, gas consumption last year decreased by 7% to 26.4 billion m3, and production and technological gas costs amounted to 3.4 billion m3, 8% less than in 2018. The decline in consumption in the country is primarily due to the relatively warm weather in the autumn and winter months at the end of 2019, as well as, to a lesser extent, measures for energy storage and energy efficiency, which also bear fruit.

The transit of natural gas from Russia through the territory of Ukraine in 2019 increased by 3% compared to 2018, to 89.6 billion m3. European gas consumers have significantly increased energy purchases from Gazprom in order to completely fill gas storages in conditions of gas confrontation, which could end with a pause in transit through Ukraine from January 1, 2020, but, fortunately for all parties, this was avoided.

Gas production by Ukrainian gas producers (in total state and private) decreased last year by 1% or 200 million m3, to 20.7 billion m3. First of all, the largest producer – the state-owned Ukrgazvydobuvannya, reduced the energy carrier extraction volumes.

Tags: Gazprom, gas, Naftogaz, contracts, legislation, EU, Ukrgazvydobuvannya, UGSF, gas production, gas transit, foreign affairs, import, Gas market, gas supplies, volumes, energy efficiency

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