Traders from EU have started storing gas in Ukrainian storage facilities, - Reuters
Despite the risks associated with the war, European traders consider it expedient to store gas not only in storage facilities on the territory of the EU, but also in Ukrainian ones.
This was reported by Reuters, citing three traders and company representatives, Censor.NET reports.
Following the outbreak of full-scale war, the EU is seeking to store large volumes of gas to compensate for reduced supplies from Russia. The block is expected to reach its goal of filling its storage 90% by November 1.
Traders believe that in addition to storing gas directly in the EU, it is also advisable to use Ukrainian storage facilities to take advantage of lower prices now. Gas for September delivery is at €30 ($32.96) per MWh, compared with first-quarter 2024 forward prices of €49, according to TTF Netherlands gas futures prices.
The Czech group EPH noted that the decision to use Ukrainian storage facilities is also a sign of trust in the country.
"EP Commodities transports natural gas to Ukraine and uses Ukrainian gas storage facilities. We believe in the reliability of Ukraine's gas transportation and storage systems, which have proven themselves even in such an extremely difficult environment," said the chairman of the board of EP Commodities EPH Myroslav Hasko, but did not specify the volumes gas.
According to the GIE transparency platform, gas storage facilities in the EU countries were 87% full on August 7.
JSC "Naftogaz of Ukraine" stated that foreign clients can use more than 10 billion cubic meters of the country's storages with a volume of about 30 billion cubic meters, mainly in the west of the country, that is, further from the front line.
Slovak state-owned SPP, which supplies gas to most of the Slovak market, partly with Russian gas, said it was considering using Ukrainian storage facilities as Slovakian storage facilities are already 90% full.
Other European traders point to risks associated with the likelihood of Russian strikes. The situation could also worsen if Russia stops pumping the gas it still transports to the West through Ukrainian pipelines.
Last month, the Bruegel think tank said that Ukraine could allow the EU to store about 10% more gas.
