Ukraine targets at least 19 Bcm in gas storage ahead of winter: Naftogaz CEO

Ukraine hopes to have more than 19 Bcm of gas in storage ahead of the next heating season to ensure there are sufficient stocks to see the country through the winter, the CEO of state-owned Naftogaz Ukrayiny said Aug. 17.

In a statement, Yuriy Vitrenko said there could be an additional call on gas-fired power in Ukraine this winter given the low level of coal stocks.

"The government has determined that at the beginning of the heating season it is necessary to have 17 Bcm of gas in storage and we are already approaching 18 Bcm," Vitrenko said.

"But in order for the heating season to run smoothly, we want to pump even more into storage," he said, adding that it was hoped to pass the 19 Bcm mark before the heating season, which traditionally starts around mid-October.

As of Aug. 16, some 17.5 Bcm had been accumulated in storage.

"We are satisfied with the preparation process and we see that everything is working as it should," Vitrenko said.

Ukraine entered the winter withdrawal season last October with gas reserves at 28.4 Bcm, well up on previous years, due to strong injections by private traders looking for storage options after European storages were quickly filled.

Vitrenko said that notwithstanding 2020's high storage levels, the usual volume in storage ahead of winter was closer to 16 Bcm.

"But we want to reach more than 19 Bcm," he said, pointing to the potential for additional gas-for-power demand.

Data from operator GTSOU showed that a total of 468 million cu m has been injected into Ukrainian underground gas storage reservoirs at an average of 31 million cu m/d between the Aug. 1-15 gas days.

If injection rates continue at this level for the remainder of the 2021 injection season, storage stocks in the country would begin November nudging close to the 20 Bcm mark.

However, with no expectation of an increase in Budince flows back to Ukraine from Slovakia coming in the near-term, a decrease in injection rates during October could be expected.

Nonetheless, even with a decrease during the beginning of the winter 2021 delivery period, 19 Bcm seems achievable if the current rate extends into September.