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Gazprom has not booked Yamal-Europe capacity or additional capacity via Ukraine for Dec
MOSCOW. Nov 15 (Interfax) – Gazprom has not booked Yamal-Europe capacity pipeline capacity or additional transit capacity via Ukraine for December, according to the results of December capacity booking auctions.
The capacity booking auctions for October and November had the same outcomes.
The spot price of gas in Europe soared following the announcement of the auction results: the price of the nearest TTF futures on the ICE Futures exchange, for December, grew to 81.27 euros per MWh or $962 per thousand cubic meters. Trading on Monday began at $947, the low being $922.
Auction results for booking of gas transport capacities of the Polish and Ukrainian transit corridors in the deficit year of 2021 have a strong impact on the price of gas on the spot market and Gazprom’s share price.
The liberalization of the European gas market has led to the abandonment of long-term transit contracts. They were replaced by transparent auction-based booking to exclude extra costs for booking excess capacities from the gas price. As a result, consignors are free to reserve only the amount of capacity they need and for the time they need it.
UKRAINE
Gas Transport System of Ukraine has allocated capacity on offer for two routes while previously only one route was put up for auction. The Sudzha gas metering station or GMS offered 9.8 million cubic meters per day, and another 5.2 mcm per day was offered at the Sohranovka GMS. All of this capacity remained unclaimed, according to the results of the Regional Booking Platform session.
No additional capacity was booked for entry to the Ukrainian pipeline system but 17.45 mcm per day was bought for exit at Uzhgorod/Velke Kapusany. Gazprom has been supplying more gas to Europe since November 9 to inject into underground storage facilities there. To take advantage of the opportunity to pump under long-term bookings of 40 bcm per year and 109 mcm per day, Gazprom is currently buying an additional 19.17 mcm of capacity at daily auctions for the Uzhgorod/Slovakia corridor.
POLAND
Gazprom also did not book any of the 89 mcm of capacity offered on the Polish section of the Yamal-Europe pipeline for December, according to the results of the booking session at GSA Platform.
The Yamal-Europe pipeline stretching over 2,000 kilometers can pump up to 33 bcm a year. The Polish 683-kilometer section is owned by the joint venture EuRoPol Gaz and operated by the national gas transmission operator Gaz-System. Gazprom’s long-term contract for transit through Poland ended a year ago. Since then, its capacity has been allocated on the basis of booking auctions. For the gas year from October 2020 to September 2021, Gazprom has booked capacity at an annual auction, while for October and November 2021 it opted to book capacity on a monthly basis.
