Ukraine tells traders its gas storage sites are safe despite recent Russian attack

Ukraine is seeking to reassure European natural gas traders that its ground storage facilities are safe, despite the recent Russian attack.

Source: Bloomberg

Details: Roman Maliutin, chief executive officer of gas storage operator Ukrtransgaz JSC, said that Ukraine expects to bring in 4 billion cubic metres of gas during the summer months, which is more than last year. Countries in Europe typically use the summer season to build up stockpiles ahead of the next heating period. However, traders "might be more reluctant after a strike on a facility in western Ukraine on Sunday," Bloomberg reported.

"I would like to stress that damages do not affect our capabilities for gas injection into underground gas storage," Maliutin told Bloomberg News.

Traders have been cautious about storing gas in Ukraine since the beginning of Russia’s full-scale invasion in February 2022. Still, Maliutin said that Ukrtransgaz now has over 1,000 contracts, including 168 with companies outside of Ukraine.

"Sunday’s attack will enhance this caution. However, we have enough capacity reserve and are ready to react," Maliutin also said.

Ukrtransgaz has measures in place to mitigate the impact if a particular site is damaged, the firm’s CEO explained. For example, it does not associate gas in certain storage facilities with specific customers but treats all of its facilities as one.

Background:

• The ground infrastructure of an underground storage of Naftogaz, the largest oil and gas company of Ukraine, in the country’s west was damaged in a Russian attack on 24 March.

Support UP or become our patron!