EU Traders Using Ukraine Storage Despite War Risks

The CEO of Ukraine’s gas TSO, Dmytro Lyppa, says the war in Ukraine has failed to deter European gas traders from using the country’s gas storage and transportation infrastructure according to Montel.

• European traders are expected to increase gas held in storage from 2bcm at present to 3bcm by “the beginning of winter”.
• Foreign clients’ trust Ukraine’s gas infrastructure operators because Russia’s invasion of the country has not disrupted storage or transit operations, he added.
• “For the period April-September 2023, 40 non-resident companies actively use our services [and] this number includes the largest European traders,” said the head of GTSOU.
• GIE president Torben Brabo this week suggested that the EU should not use Ukraine’s gas storage capacity due high war-related risks.
• Naftogaz said 45 companies from 30 different countries were currently storing gas in the country and that “the number keeps increasing”. Storage facilities located 2-3 kilometres below ground would be “very complicated” to physically damage.

European natural gas storage is up to 94.40% full on 20 Sep according to GIE data with Ukraine gas in store up to 35.29% full.