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EU Traders Shunning Ukraine’s Gas Storage: FT

NATGAS

European Traders this summer are only using a fraction of Ukraine’s natural gas storage, following Russian attacks that drove up risks, according to the FT.

  • Ukraine has the largest underground storage in Europe and provided capacity to EU companies ahead of winter. Ukraine offered 10 bcm of storage, of which 2 bcm was used by the EU.
  • Despite gas storage in Europe at around 87% full, EU gas operators haven’t turned to Ukraine, sending just 15.4 mcm and 51.9 mcm in June and July. This compares to 102.7 mm and 586.6 mcm in the same months during 2023, Argus said.
  • The main concern is damage to overground facilities to pump the gas, rather than the storage which is deep underground and safe from strikes.
  • This would prevent EU buyers from withdrawing the gas.
  • Russia has repeatedly targeted Ukraine’s energy infrastructure, including gas storage in Western oblasts near the Polish border.

Source: Financial Times

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