According to Ukrtransgaz, the first half of 2020 was a record-setting for the operation of Ukrainian UGSs in recent years. Outside the increase in domestic gas injection, there is a significant increase in demand from European customers for the use of Ukraine’s UGSs. In the first half of 2020, European customers injected 2.6 bcm of gas into Ukrainian UGSs, which is more than three times higher than last year.
NATURAL GAS STOCK IN UGSS
At the end of June 2020, Ukrtransgaz's UGSs accumulated over 19.8 bcm of gas. This is 47% or 6.3 bcm more than in 2019.
Over the last ten years, the average filling of UGSs at the end of June was 12.4 bcm. This year, gas stock in storage facilities is 60% higher than the average for the last ten years.
GAS INJECTION
The volume of gas injected into UGSs in Ukraine in the first half of this year was 6.5 bcm of natural gas, which is 0.2 bcm more than last year. Foreign traders made a significant contribution to the filling of domestic gas storage facilities. They injected 2.6 bcm of gas in the first six months of this year. Compared to last year, the volume of gas owned by foreign companies in UGSs has tripled.
"CUSTOMS WAREHOUSE" AND TRANSPORTATION TO UGS AT "SHORT HAUL" TARIFFS
The volume of gas stored by national companies as of July 1, 2020 in the Customs Warehouse* is 1.3 bcm (40% less than in 2019). At the same time, this service is actively used by European and American traders. Thus, as of July 1, 2020, non-resident companies stored 3.6 bcm of gas in the customs warehouse (+ 253% against the same period last year).
To transport gas to the Customs Warehouse, UGS customers, primarily foreign ones, are increasingly using special "short haul" transportation tariffs** set by the NEURC for the GTS Operator earlier this year. Since the early year, residents, using this tariff, transported 0.14 bcm of gas to the Customs Warehouse. Since the early year, non-residents injected 1.6 bcm into the Customs Warehouse using the special tariff, of which only in June - 0.8 bcm.
"We expect Ukrainian UGSs to be filled by approximately 25.5-26.5 bcm by the beginning of the withdrawal season. At the same time, the active volume of gas in UGSs in 2020 will grow up to 20% compared to the highest figure for the last ten years of 2019 - 21.8 bcm. If this task is done, this season will be the most effective in the history of Ukrainian UGSs," Serhiy Oleksienko, CEO of Ukrtransgaz, said.
In turn, Naftogaz Exploration and Production Division keeps on hydrocarbon recovery figures even with limited financial resources due to falling gas prices and the coronavirus pandemic. In the first half of 2020, the company produced 6.76 bcm of gas and supplied it to the population and DHCs.
Deviation from similar last year figures is minus 0.8% or 53 mmcm of natural gas, while the average sales price of gas by the company decreased by 47% compared to the first half of 2019.
"We change our approaches to managing gas exploration and production projects. Thanks to this, in fact, we managed to keep production in difficult times, when other producers reduce operational plans and programs. Our team launched 9 high-performance wells during the first half of 2020. In some areas, where we are confident of obtaining the highest result, the number of production operations has even been increased," Oleksandr Romaniuk, director of Naftogaz Exploration and Production Division, said. "We think not only about today, but also for future. Therefore, we develop a medium-term strategy for gas exploration and production considering new market factors. Among its main goals is to increase the resource base of hydrocarbons. In fact, we expect to create a new foundation for the development of the industry."
The implementation of the production program helped us achieve commercial gas production figures due to:
• completion of drilling of 20 wells;
• completion of 347 operations using coiled tubing units;
• completion of 53 fracturing operations;
• completion of 62 well overhaul operations;
• construction of 118 km of new loops and 36 km of gas pipelines;
• commissioning of 3 booster compressor stations;
• reconstruction of 2 complex gas treatment plants.
