Photo: NBU press service
NBU assesses the benefits of the 2019 gas contract with Russia
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The contract for the transit of Russian gas to Europe through the Ukrainian gas transportation system was signed in December 2019.
In 2020, the profit from the new transit contract with Gazprom amounted to about $ 0.5 billion. About it informs National Bank on Friday, April 23.
The contract was signed in December 2019. During 2020, the Ukrainian GTS Operator pumped 55.8 billion cubic meters of Russian gas to Europe – 38% less than in 2019. The reasons for this decline were lower gas demand due to the pandemic, significant reserves in European storage facilities, including due to the warm winter of 2020, and the launch of new bypass gas pipelines.
Nevertheless, in connection with the provisions of the contract, Ukraine received $ 2.1 billion for transit services, which is only 21% less than in 2019.
“Thus, the benefit from the implementation of the” download or pay “principle was about $ 300 million,” the NBU added.
In addition, due to the increased demand and prices for gas in the EU at the end of 2020, Gazprom booked additional transit capacities in Q4 and paid another $ 30 million for them.
In the process of unbundling, OGTSU entered into a number of direct inter-operator agreements with operators of GTS of neighboring countries. Under the new transit contract, this made it possible to provide market participants with new types of services, namely a virtual reverse and a short hall, which can be used in the “customs warehouse” mode, that is, storing gas in Ukrainian storage facilities without paying customs duties. As a result, 45% of the total volume of gas transportation from the EU to Ukraine (about 7.2 billion cubic meters) was carried out through a virtual reverse. It is estimated that the savings on virtual reverse is about $ 20 per thousand cubic meters, so using it allowed OGTSU customers to save about $ 143 million.
The short-haul service also enjoyed significant demand against the backdrop of low gas prices and occupancy of UGS facilities in the EU countries. During 2020, 60% of the total volume of gas supplies to the “customs warehouse” (or 6.1 billion cubic meters) was carried out within this service, the NBU noted.
In general, receipts from gas transit within the framework of the short hall service during 2020 amounted to about $ 25 million. In addition, users of the short-hall service also paid for storage of gas in Ukrainian UGS facilities in the amount of about $ 50 million.
“Thus, the total benefits from the new transit contract in 2020 amounted to about $ 0.5 billion, which somewhat softened the losses from the expected decrease in gas transit,” the National Bank concluded.
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Recall that earlier Gazprom bought all additional transit through Ukraine… The concern bought all the proposed additional transit capacity of Ukraine for May – slightly more than in April.
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