Russian Attack on Ukrainian Gas Storage Supports TTF

A Russian drone attack struck an underground natural gas storage facility in western Ukraine on Sunday, supporting European natural gas benchmark prices amid added supply risks.

• TTF APR 24 up 3.1% at 28.65€/MWh
• TTF SUM 24 up 3.3% at 28.88€/MWh
• TTF WIN 24 up 2.6% at 32.6€/MWh
• “With both countries attacking energy infrastructure, the supply of gas and fuel is once again being called into question,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank.
• “For gas, not least the latest attempt by Russia to hit an underground storage site in Ukraine has raised the temperature today”, Hansen added.
• The underground storage itself was not damaged but other equipment on the ground had been damaged, Oleksiy Chernyshov, CEO of Naftogaz Ukrainy, said via social media.
• Sunday’s assaults didn’t interrupt domestic gas supplies and Ukraine continues to meet all obligations and fulfill storage bookings by foreign clients, Chernyshov said.
• The attack on the storage marked the second attack on Ukrainian energy infrastructure in three days.
• Around 80% of Ukraine’s underground storage facilities are in the country’s west, away from the front line and Naftogaz is also taking numerous measures to protect the facilities from attacks and war-related damage, Chernyshov said earlier this month.
• Foreign traders injected 2.5 bcm of natural gas into Ukrainian storage sites last year according to Bloomberg.
• Ukraine is planning to over 10bcm of natural gas storage to foreign clients this year, Bloomberg reported in late February.