Europe is experiencing the ninth day without Nord Stream gas.
This week will bring a new test to the energy sector in the region in the form of another peak of summer heat with minimal wind, due to calmness in Europe, electricity generation due to wind has fallen.
The application for the transit of Russian gas through the territory of Ukraine is at the level of previous days and months.
Ukrainian transit
„GTS Operator of Ukraine” accepted from „Gazprom” an application for gas transit on Tuesday in the amount of 41.7 million cubic meters. m, according to the Ukrainian company. The figure on Monday was 41.5 million cubic meters. m . Capacities have been announced for only one of the two entry points to the country’s GTS – the Sudzha gas measuring station. The application was not accepted along the corridor through the GIS „Sohranivka”.
Sergey Kupriyanov, the official representative of Gazprom, told reporters: Gazprom is supplying Russian gas for transit through the territory of Ukraine in the amount confirmed by the Ukrainian side through the Sudzha GIS – 41.7 million cubic meters. m on 19 July. The application for the GIS „Sohranivka” was rejected”.
OGTSU has declared force majeure for gas acceptance for transit through the Sokhranovka GIS station, as it allegedly cannot exercise operational and technological control over the Novopskov compressor station. Kyiv proposed to transfer transit volumes from Sokhranovka to Sudzha GIS, but Gazprom is sure that this is technologically impossible, based on the Russian flow scheme. Also, the distribution of volumes is specified in the cooperation agreement of December 2019.
The Russian concern believes that there are no grounds for force majeure, just as there are no obstacles to continuing work in the previous mode.
European market
Europe’s wind power generation fell to 8% on Monday, after a weekly average of 11%, according to data from the WindEurope association. Very hot and low wind weather is predicted for the coming week, which will further exacerbate the energy shortage.
Spot gas prices in Europe against the backdrop of a shutdown for the repair of Nord Stream are above $1,600 per thousand cubic meters. In Asia, prices are significantly lower – August futures on the JKM Platts (Japan Korea Marker) index reflects the spot market value of cargo shipped to Japan, South Korea, China and Taiwan, is trading at $1,400.
Europe continues pumping gas into underground storage facilities. UGS data, now regulated by law, are now one of the most important economic and political indicators for Europe, reflecting the ability of the EU leadership to ensure energy security.
At the moment, the reserves are 64.42%, according to data from the association Gas Infrastructure Europe. The increase over the last reporting day (July 17) amounted to 0.4 percentage points (on the weekend it is possible to pump more gas due to a decrease in industrial demand).
Since this year, the EU has introduced strict regulation of the use of underground storage facilities. By the beginning of the withdrawal season in 2022, the reserves should be at least 80% of the UGS capacity, and in the subsequent season – 90%.
European LNG receiving terminals are loaded by 67% on average in July against 63% in June. So far, the region remains a premium market for LNG, as prices in Asia are slightly below European hubs.