As EU storages are nearing full capacity, and injection rates are slowing down, Ukraine is emerging as largest driver for Europe’s late storage injections before the start of the heating season.
Ukraine’s storage injections were outpacing Germany since mid-August and these days account for around 30% of total EU+Ukraine injections.
A hefty premium of $4/mmbtu on winter contracts is driving European traders to look for additional injection options, including in Ukraine. Around 2 bcm of gas was injected so far by European companies.
While Russia’s brutal invasion is putting an unprecedented pressure on Ukraine, the wealth and opportunities the country’s energy and gas system can offer should not be overlooked.
What is your view? What role can play Ukraine’s vast storage system in Europe’s energy security? And what could be its role on a more global scale?
Source: Greg MOLNAR