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OVERVIEW OIL AND GAS: August 2020

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For 8 months of 2020, the GTS Operator of Ukraine transported 12.5 bcm of gas from Europe to Ukraine at the request of its customers. This is 30% (2.9 bcm) more than in the same period last year. This is also 63% higher than the average in 2016-2019, the company said.

In just 8 months of 2020, imports from Slovakia amounted to 8.0 bcm (+ 35% compared to the same period last year), from Hungary - 3.2 bcm (+ 20%), from Poland - 1.3 bcm (+ 34%).
In particular, 38% or 4.7 bcm: from Slovakia - 1.6 bcm, from Hungary - 2.3 bcmm, from Poland - 0.8 bcm were imported through the backhaul, which first became available earlier this year.
It should be noted that on September 1, the GTS Operator of Ukraine started repair works on the section of the Luping G4 gas pipeline that goes through the Budintse GMS on the border with Slovakia and expects to complete them by September 21. At the time of repair, significant import capacities are available for customers of gas transportation services at the Uzhhorod - Velke Kapushany interstate point in the form of the backhaul to completely overlap temporarily unavailable capacities of the Budintse connection point. For its part, the GTS Operator of Ukraine transferred for free the reserved capacity from the Budintse to

Uzhhorod-Velke Kapushany point.
According to operative data of the GTS Operator of Ukraine, 3.4 bcm of natural gas were imported to Ukraine in August 2020, which is 58% (or 1.2 bcm) more than the import volumes of July 2020 and 67% (or 1.4 bcm) more than in August 2019.

First reverse transportation from Romania to Ukraine took place in August.
The average daily volume of gas transportation from European countries to Ukraine in August amounted to 109 mmcm, while in January this year it was seven times less - only 15 mmcm.
Since the beginning of the year, 8.2 bcm of imported volumes were sent to underground storage facilities to be stored in the "customs warehouse" mode. Of them, 60% (or 4.9 bcm) came in the "shorthaul - customs warehouse" mode and 40% (3.3 bcm) - in the "border - customs warehouse" mode.
In total, 72 traders ordered gas exports from the EU to Ukraine in January-July, including 45 Ukrainian companies and 27 foreign ones. Over 50 companies used shorthaul and "customs warehouse" services, most of which are non-residents.

In January-August 2020, Ukrgasvydobuvannya JSC transferred UAH 480 million of royalty payments to local budgets on the territory of which the company recovers hydrocarbons.
In general, the consolidated budget of the country will receive more than UAH 9.6 billion of royalty payments from Ukrgasvydobuvannya for 8 months of 2020.
5% of royalty payments - UAH 480 million - will be sent to the budgets of different levels in 12 regions.
About 90% of these funds are concentrated in two gas regions - Kharkiv and Poltava.
In general, royalty funds are distributed among the regions as follows:
• – Kharkiv region – UAH 223.3 million
• – Poltava region – UAH 219.5 million
• – Lviv region – UAH 20.6 million
• – Dnipropetrovsk region - UAH 8 million
• – Others - UAH 8.9 million

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ХІ МІЖНАРОДНА
НАФТОГАЗОВА КОНФЕРЕНЦІЯ
30–31 ТРАВНЯ 2024
М. ЛЬВІВ, БУДИНОК ВЧЕНИХ
LLC "Newfolk Oil and Gas Consulting Center"
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