Ukrainian Gas Reserves Are Crucial in Averting European Energy Crisis this Winter
European companies have accelerated the withdrawal of natural gas from Ukraine due to the growing demand for heating in the winter months. This will reduce the likelihood of another energy crisis. Earlier this year, EU energy companies turned to Ukraine, home to Europe's largest gas storage facilities, to preserve their reserves despite the war in the country following a full-scale Russian invasion in 2022, the Financial Times reports.
"This winter, Ukraine is playing a key role in ensuring the security of gas supplies to Central and Eastern Europe," Natasha Fielding, head of European gas pricing at price reporting agency Argus Media, told the Financial Times.
Consumption of gas stored in Ukraine "helps Europe maintain high domestic stocks, reducing the risk of facilities being nearly emptied by any prolonged cold spell in late winter," she said.
Most of Ukraine's storage tanks are deep underground, far from the frontline. Ukraine has offered up to 10 billion cubic metres to foreign customers, a third of its national capacity. This adds to the 115 billion cubic metres of available storage in the EU.
According to the state energy company Naftogaz of Ukraine, European companies have stored about 2.5 billion cubic metres of natural gas ahead of the winter months, a record high since Russia's invasion of Ukraine.
The names of the companies storing gas there are usually not disclosed due to security concerns, but commodity trader Trafigura revealed in its latest financial report that it is among them.
According to Argus Media, companies began withdrawing gas from Ukrainian storage facilities in early November, with net withdrawals averaging about 10.7 mcm per day. This pace accelerated amid a sharp cold snap in December, with net withdrawals almost doubling to an average of 26 mcm daily by mid-December.
Poland received more than half of the gas withdrawn from Ukrainian storage facilities, while Moldova, Slovakia, and Hungary used the rest.
Despite the cold weather, the storage level in the EU remained at almost 90% even at the end of December, which is significantly higher than the average for the previous five years.
Earlier, it was reported that the EU is preparing to stop the transit of Russian gas through Ukraine.