Gazprom books 42.4 mcm via Ukraine

KYIV. Oct 12 (Interfax-Ukraine) – The Gas Transmission System Operator of Ukraine, or GTSOU, has accepted a booking from Gazprom today to transport 42.4 million cubic meters of gas through the country, same as the previous gas day, data from GTSOU show.

Capacity was requested only through one of two entry points into Ukraine’s Gas Transmission System, the Sudzha metering station. A request was not accepted through the Sokhranivka metering station.

Comfortable Indian/St. Martin’s summer weather has brought unfavorable light winds for European power, causing nearly a 50% drop in generation today, and tomorrow is also expected to be clear with light winds.

Wind turbines generated 11% of the EU’s electricity on average on Tuesday, 17.8% on Monday, and 18.6% last week, according to data from WindEurope.

The Indian summer continues in Europe, where the spot price – the day-ahead contract at the TTF hub in the Netherlands – fell as low as $855 per thousand cubic meters at one stage last week, but is now up to $1,024. The October futures contract is $1,558, and the March contract is $1,758. In Asia, the most expensive winter futures contract for February on the JKM Platts index is now $1,373.

The Nord Stream pipeline is completely shut down due to problems with equipment maintenance caused by sanctions. In addition, last week two strings of Nord Stream 1 and one of Nord Stream 2 depressurized near the Danish island of Bornholm.

European liquefied natural gas terminals operated at an average of 59% of capacity in September, as in August, rising to 61% so far in October, data from Gas Infrastructure Europe indicate.

Europe continues to inject gas into underground gas storage facilities, with the average level of reserves reaching the targeted 80% at the end of August, since when the pace of injection has slowed. The European UGS facilities usually transition from net injection to net off-take around October 20.

Inventories in UGS facilities have risen to 91.35%, up 0.21 percentage points from October 11, the last reporting date, according to Gas Infrastructure Europe data. Off-take is rising along with injection at a ratio of 26%.

Gas inventories in UGS facilities currently exceed 80% in Austria, Belgium, the Czech Republic, Croatia, Denmark, France, Germany, Italy, the Netherlands, Poland, Portugal, and Spain.

Bulgaria has reached the 80% target this week, but Hungary and Latvia still lag.

Gas stocks at the Incukalns UGS facility in Latvia are the lowest in the EU and are stuck at around 54%. This UGS facility is responsible for reserve gas supplies to Estonia, Latvia and Lithuania, as well as Finland.

The situation with gas injection in the U.S. has improved. Air conditioners are being turned off; and there is no immediate demand for heating, allowing for more gas to be injected into UGS facilities that are also filling, because the Freeport LNG terminal has halted exports following the accident, and owing to the 17-day stoppage until October 18 at the Cove Point plant for scheduled maintenance, following which more gas will once again be exported.

The rate of injection increased during the last reporting week, with 3.6 bcm stored, up from 2.9 bcm in the previous two weeks.

The current inventory level is around 64%, which is substantially below inventory at UGS facilities in Europe, with the EU having topped this level a month and a half ago; and in Russia, which has over 90%.

UGS inventories in the U.S. are now only 7.4% above the five-year minimum, according to the U.S. Energy Department’s Energy Information Administration. Current inventory lags 8% behind the five-year average.