Ukraine reduced gas transit by 38% in 2020

Author

Maksim Nechiporenko

Gas supplies to European countries through the Ukrainian gas transmission system (GTS) in 2020 amounted to 55.8 billion cubic meters, and that is 38% less compared to 2019.

"In 2020, the GTS of Ukraine Operator (GTSOU) transited 55.8 billion cubic meters of gas to Europe (-38% compared to 2019). The volume of gas transportation from Europe to Ukraine for the same period amounted to 15.9 billion cubic meters (+ 12% compared to 2019)", reports GTSOU.

The decrease in transit volumes to Europe was primarily due to the launch of gas pipelines bypassing Ukraine, as well as a decrease in fuel demand in the EU due to significant reserves in storage facilities, the economic crisis and LNG supplies from the Middle East, Russia and the United States.

At the same time, transit was less by 14% (or 9.2 billion cubic meters) than provided for by the agreement with Gazprom. The transit agreement with Gazprom provides for the facilities reservation in the amount of 65 billion cubic meters (178 million cubic meters/day) in 2020 and 40 billion cubic meters (110 million cubic meters/day) in 2021-2024. Supplies on a "pump or pay" basis.

The average daily transit volume since the beginning of the year amounted to 153 million cubic meters per day. In December, this figure was 183 million cubic meters per day by means of capacities additionally ordered through the auction platforms for the gas transportation to European countries.

Transit to countries is as follows.

In total, 51.9 billion cubic meters of gas (-32%) were transported westward. 3.8 billion cubic meters to Poland, 38.5 billion cubic meters to Slovakia, 9.6 billion cubic meters to Hungary.

Southward, transit amounted to 3.9 billion cubic meters (-70%). Of these, 0.9 billion cubic meters were transited to Romania and 3 billion cubic meters—to Moldova.

Gas transportation from European countries to Ukraine at the GTSOU customers’ request amounted to 15.9 billion cubic meter. And that is 12% more than in 2019 and 27% more than the average figures of the corresponding periods in 2016-18.

In total, in 2020, imports from Slovakia amounted to 10.2 billion cubic meters (+ 11% compared to the same period last year), from Hungary almost 4.2 billion cubic meters (+ 14%), from Poland almost 1.5 billion cubic meters (+ 3%). The virtual reverse (backhaul) that first became available in early 2020, 45% were imported.

Since the beginning of the year, 10.1 billion cubic meters of imported volumes have been sent to underground storage facilities for storage in the "customs warehouse" regime. Of these, 60% (or 6.1 billion cubic meters) came in the "shorthaul—customs warehouse" regime and 40% (4.0 billion cubic meters) in the "border—customs warehouse" regime. In November, the phase of active gas extraction from the customs warehouse and its further transportation to the EU countries (0.3 billion cubic meters) began.

In total, 82 traders ordered gas transportation from the EU to Ukraine in January-December, and 52 of them were Ukrainian companies and 30 foreign ones. In total, the short-haul and "customs warehouse" services were used by more than 50 companies, most of them are non-residents.