By KYIV. Sept 15 (Interfax-Ukraine) – European countries are now taking as much gas out of storage as they are putting in, but the transition to net withdrawals will take another two weeks at least with the Indian summer there set to continue for now.
UKRAINE TRANSIT
Gas Transmission System Operator of Ukraine, or GTSOU, has accepted a nomination from Russia’s Gazprom today to transport 42.4 million cubic meters of gas through the country, as on Thursday, data from GTSOU show.
Capacity was requested only through one of two entry points into Ukraine’s Gas Transport System, the Sudzha metering station. A request was not accepted through the Sokhranovka metering station.
The published nomination is the highest technically possible for that route, given the restrictions imposed by Ukraine.
“Gazprom is supplying Russian gas for transit through the territory of Ukraine at the volume confirmed by Ukraine via the Sudzha metering station at 42.4 mcm on September 15, with booking via the Sokhranovka metering station declined,” Gazprom spokesman Sergei Kupriyanov told reporters.
GTSOU has declared a force majeure with respect to acceptance of gas for transit through Sokhranovka, claiming that it cannot control the Novopskov compressor station. The route through Sokhranovka had provided transit of more than 30 mcm of gas per day. Gazprom believes that there are no grounds for the force majeure or obstacles to continuing operations as before.
EUROPEAN MARKET
Wind power generation in Europe is lower than usual for the time of year: wind turbines generated 7.5% of Europe’s electricity on September 14, according to WindEurope data. Wind generation averaged at 13.5% in September 2022 and 13% in August 2023.
The spot price for gas in Europe fell 5% on Thursday: the day-ahead contract at the TTF gas hub in the Netherlands closed at $393 per thousand cubic meters.
The spread between LNG prices in Asia and those in Europe is widening: in Asia, the most expensive futures contract for October on the JKM Platts index is $477 per thousand cubic meters, and futures under the LNG North-West Europe Marker are $407 per thousand cubic meters.
EUROPEAN INVENTORIES
The level gas storage in Europe is a key indicator for the global market. The region as a whole continues to pump gas into storage. However, withdrawals are also on the rise and net gas injection has almost reached zero. Austria, Slovakia, Croatia, the Czech Republic, Denmark, and France are already taking gas out of storage on a net basis.
Current inventory levels in Europe’s underground gas storage facilities are 93.86%, which is 10 percentage points above the average for the same date over the past five years, according to Gas Infrastructure Europe.
Inventories inched up 0.012 percentage points during the September 13 gas day. Injection rates are markedly below the five-year average, but the target level of 90% has nevertheless been reached and storage is currently at the highest for this date since GIE records began.
European LNG terminals operated at 50% capacity in August and 52% since the start of September.
U.S. INVENTORIES
Gas inventories in UGS facilities in the United States are of increasing importance for the global market, as the country is actively increasing gas exports.
The U.S. gas injection season continues. Inventories increased by 1.6 billion cubic meters for the latest reporting week, which is 25% below the norm for this time of year.
The current level of inventories is 67%, which is 7 percentage points above the five-year average, according to the U.S. Energy Department’s Energy Information Administration.
