Friday, November 5
Ukraine has joined the Net Zero World initiative , announced the Ministry of Energy. “Through participation in the initiative, Ukraine will have access to the development of 17 research laboratories of the US Department of Energy for the possible implementation of pilot projects on decarbonization. Ukraine is an equal partner of the initiative, which offers in-depth cooperation in nuclear energy”, announced in the Ministry of Energy.
Thursday, November 4
The launch of Nord Stream-2 may be delayed until May 2022, reported Bloomberg. “If regulators want to use all the time allotted for the project, it can be approved no earlier than May 8, 2022”, the agency said. Earlier, Russian officials said that the Nord Stream-2 gas pipeline supply could begin “the next day” after the project is approved. It is noted that the Federal Network Agency of Germany must issue a draft decision on certification by January 8, after which it will be submitted to the European Commission. Experts have
EBRD to invest $75 million in a sustainability-linked Eurobond issued by Ukrenergo. In a bid to resolve the payments crisis gripping the country’s renewable energy sector, the proceeds will cover all payment arrears owed to renewable energy producers. The investment will help to restore the credibility of the Ukrainian renewable energy sector and boost the confidence of private investors and financiers, paving the way for much-needed investment to support the country’s green transition.
Wednesday, November 3
Gazprom has not booked additional capacity for the transit of gas through Ukraine in 2022. Gazprom did not reserve additional capacity for gas transit through Ukraine and Poland from the first to the third quarter of 2022, and refused to reserve additional capacity for pumping gas through the Polish section of the Yamal-Europe gas pipeline. Against this background, the price of gas in Europe rose by almost 9%.
Electricity exports increased 3.1 times last week. Total electricity exports last week amounted to 61.7 mln kWh, 3.1 times more than in the previous week, Ukrenergo has reported. It is noted that the average daily exports from the “island of Burshtyn TPP” last week compared to October 18-24 increased 3.4 times to 61.4 million kWh, and from the Unified Energy System (UES) of Ukraine decreased by 4,3 times, up to 0.3 million kWh. At the same time, exports to Moldova last week decreased by 4 times compared
Akhmetov’s new coal company earned a profit of ₴1.91 bln ($72.62 mln). Ukraine’s largest producer of coking coal, the Pokrovske Mine Management, which was purchased by the Metinvest Group in March 2021, earned a net profit of ₴1.91 bln in January-September this year. According to the company’s interim reports, the Pokrovske Mine Management increased its net income by 95.4% to ₴10.51 bln ($399 mln) in 9 months. The outstanding loss of the company at the end of September this year amounted to ₴2.06 bln.
Iron ore prices have fallen to an annual low due to weak demand from China. For the first time in almost a year, iron ore futures in China fell below 600 yuan ($93.75) per ton due to weak supply conditions and poor demand forecasts. It is noted that ore supplies from Australia and Brazil remained relatively high. Iron ore reserves in 45 Chinese ports this week rose to 146.5 million tons, which is 4.05 million tons more than the previous week. Demand for raw materials has remained weak amid controls on steel production and slow
Tuesday, November 2
PJSC Centrenergo has paid off all debts to state mines for the supply of coal. “There is no debt to mining companies for the supply of coal,” announced the company. Such actions in the company were explained by the understanding of “the urgent need to increase domestic coal production to ensure the security of the state.”
In October, DTEK increased coal supplies to TPPs by 17%. The volume of coal supplies to thermal power plants increased by 20% to 1.6 million tons, the main growth was provided by supplies to thermal power plants of DTEK Energo was 17%. In October 2021, Ukrainian thermal power plants received 1.36 million tons of Ukrainian-mined coal and 235 thousand tons of imported coal.
Ukraine has the right to demand compensation from its European neighbors if the Russian Federation stops gas transit. This statement was announced by a member of the Head of the European Parliament delegation to the Euronest Parliamentary Assembly, Andrius Kubilius. “Ukraine has the legal right to demand some kind of compensation or guarantees from partners in the West, who guaranteed that transit will remain, and in fact, things are not going in this direction”, Kubulius was reported saying to Interfax.
Nord Stream 2 AG has appealed against a German court ruling on an exemption from the EU gas directive. On May 15, 2020, the Federal Network Agency rejected Nord Stream 2 AG’s application for a derogation from the rules of the EU Gas Directive, which was amended in 2019. Nord Stream 2 AG claims that the company is subject to unlawful discrimination in connection with this directive. Among the main provisions of the directive is the separation of companies that supply gas and companies that transport it. This means that the Nord Stream-2 operator must be independent of Gazprom,
Ukrenergo will resume electronic auctions for access to interstate power grids. The Kyiv District Administrative Court has canceled measures to secure DTEK Zahidenergo’s lawsuit, which led to the forced suspension of all auctions for the distribution of access to the capacity of interstate power grids Ukrenergo has reported. Ukrenergo notes that daily auctions on the electronic platform may take place on November 1, 2021 for the day of delivery on November 3, 2021.
Nikopol Ferroalloy Plant increased production by 25.2%. In the period January to September, Nikopol increased production by 25.2% compared to the same period last year. The volume was 508,810 tons. Over the nine months the plant increased production of silicon manganese by 25.1%, to 470,930 tons, and ferromanganese by 25.9%, to 37,880 tons. In September, 61,000 tons of ferroalloys were produced.
Monday, November 1
The State Property Fund (SPFU) again canceled the auction for the privatization of JSC United Mining and Chemical Company (OGHC), which was to take place on October 29. The cancellation was due to the fact that it only received two bids. One of them did not meet the requirements of current legislation, and it is impossible to hold an auction with only one participant. The next auction will take a place in December this year, announced SPFU.
Ukraine expects to import coal from Poland, Kazakhstan, and South Africa, reported epravda. “The state-owned Centerenergo plans to import about 200,000 tons of coal from these countries. Negotiations are also underway with suppliers from the United States,” First Deputy Minister Yuriy Vlasenko said. It is also noted that the share of coal imports will increase compared to October, but the work of thermal generation is mostly provided by Ukrainian coal.
Gas prices at Europe’s leading hub fell below $ 800 per thousand cubic meters, after Russia’s promises to increase gas reserves in storage from November reported The Financial Times. Gazprom has intentions to increase gas injections into the company’s underground storage facilities in Europe from November 2021.
Friday, October 29
Ukraine and Romania have provided Moldova enough gas to maintain pressure in its transmission network, announced the press service of Moldovatransgaz on Thursday. Without naming the amount of fuel borrowed, the company said that Ukraine has lent natural gas to balance the gas transmission system, which Moldova can use until October 31, reported Interfax.
Energoatom buys out almost all available capacity for electricity imports from Belarus in November. Energoatom purchased almost all the available interstate capacity for electricity imports from Belarus in November – 885 MW out of 900 MW offered by Ukrenergo at an auction on Wednesday, reported Interfax. The marginal price of access to the intersection as a result of the auction was ₴601 / MWh.
Thursday, October 28
Ukraine is already pumping an additional 50-55 billion cubic meters of gas to Europe today, said the Secretary of the National Security and Defense Council (NSDC), Alexei Danilov. “We can already provide additional gas pumping capacity today. Our gas transportation system can provide in addition to the current 40 billion cubic meters of gas provided by the contract with the Russian Federation, another 50-55 billion cubic meters, and if necessary, more,” said Alexei Danilov.
This year, the GTS (Gas Transmission System) operator received ₴5.8 bln ($220 mln) in net profit. The company’s income from the sale of services amounted to ₴40 bln ($1.52 bln), as reported on the company’s website. The increase in the debt of GDN operators was due to significant volumes of gas extracted from the system of main gas pipelines to ₴10.7 bln ($406 mln) is a key factor influencing the financial results of OGTSU.
Ukraine is ready to provide external customers access to 40% of its underground gas storage facilities to create strategic reserves, said UGS Operator, Serhiy Pereloma, speaking at the recent Ukrainian Gas Forum which was held in Kyiv. According to Pereloma, in order to ensure energy security during peak periods, it is necessary to form gas reserves at the level of 25-30% of annual consumption, while not all European countries have the necessary storage capacity.
Wednesday, October 27
Germany has taken a step towards Nord Stream-2 certification, announced DW. The German Ministry of Economy announced that it had completed an analysis of the reliability of gas supplies on Nord Stream-2 and passed its results to the Federal Office of Networks (Bundesnetzagentur). The Ministry of Economy has concluded that the certification of the new gas pipeline does not pose a threat to the security of gas supply to Germany and the EU. Prior to the decision, the agency consulted with other EU members Estonia, Italy, Latvia, Lithuania, Austria,
The rise in coal prices forces cement producers to work at a minimum margin. The majority of cement producers in Ukraine are having to adjust their business model due to the doubling in the price of coal. “The price rises of coal creates significant pressure on the pricing policy. It is impossible to produce cheap goods out of expensive components,” said the Chairman of the Ukrcement Association, Pavlo Kachur, in an interview with Interfax-Ukraine.
Electricity exports fell 38% last week. The total export of electricity for October 18-24, 2021 amounted to 19.5 million kWh, which is 38.5% less than in the previous week, reported Ukrenergo. It is noted that the average daily exports from the “island of Burshtyn TPP” compared to October 11-17 decreased by 22.2% to 18.2 million kWh, and from the UES of Ukraine – 6.4 times to 1.3 million kWh. The reduction took place in all directions, except Hungary (+ 26.5%) and Moldova (+ 9.1%).
Tuesday, October 26
The German Ministry of Economy and Energy has received a proposal from Ukraine for an additional transit of 55 billion cubic meters of gas, reported Interfax. We will talk intensively about this proposal,” said German Ambassador to Ukraine Anka Feldhusen speaking at a conference in Kyiv. Feldhusen stressed that Germany is also trying to save transit through Ukraine, “I must also say that the transit of gas will end someday, so Ukraine should work on the future of this system to ensure the transit of hydrogen in the future so that Ukraine becomes independent, it can export energy,” he added.
Coal stocks at warehouses decreased by almost 7% during the past week. As of October 25, 2021, coal reserves in the warehouses of thermal power plants (TPPs) and thermal power plants (CHPs) amounted to 701,300 tons, which is 6.9% less than the reserves on October 18. Thus, the actual fuel reserves are 4.2 times smaller than planned, says gov.ua. The growth in demand for Ukrainian coal is from China due to its current trade war with Australia.
Ukrainian and Australian scientists will cooperate in the field of hydrogen energy. Deputy Minister of Energy of Ukraine, Yulia Pidkomorna, met with Deputy Head of Mission and Consul of the Embassy of Australia in Ukraine, Robert Vin Curtis. The parties agreed on cooperation between scientists of Ukraine and Australia in the development of hydrogen energy. The interdepartmental working group is working on the basis of the Ministry of Energy to develop a Strategy for the Development of Hydrogen Energy in Ukraine until 2030.
Monday, October 25
Ukraine is ready to pump an additional 55 billion cubic meters of gas to the EU in excess of the 40 billion cubic meters that Gazprom must pump under the transit contract. Ukraine may also assist Moldova’s gas supply, said Oleksiy Danilov, of the National Security and Defense Council. “The Cabinet of Ministers together with Naftogaz Ukraine and the GTS Operator will determine special conditions for the transportation of additional volumes of natural gas of the GTS of Ukraine to EU countries in the amount of at least 55 billion cubic meters per year,” Danilov announced.
Ukraine is ready to provide Russia with a 50% discount on gas transit to Europe , said President Zelensky. According to Zelensky, the proposal concerns the transit of gas in excess of the 40 billion cubic meters established by the contract with the Russian company in order to ease the energy crisis in the region as reported by Bloomberg.
Shortage of coal in warehouses to be covered by imports, said the Minister of Energy, German Galushchenko. Ukraine has signed contracts for the imports of 4 million tons of coal. Galushchenko added, “In order to ensure the stable operation of the power system, nuclear generation will be involved as much as possible” (ukrinform).
Friday, October 22
The Verkhovna Rada has passed a law on attracting investment and developing the biomethane market. The law aimed at developing the production and export of biomethane and attracting investment in this area. Biomethane is a gas whose physical and technical characteristics meet the requirements of natural gas for supply to the gas transmission system or use as motor fuel. Due to this, Ukraine will be able to issue guarantees of origin for the amount of biomethane supplied to the GTS. The use of the biomethane register will allow export of the produced gas.
The state budget will receive almost UAH 395 mln ($15.1 mln) from the sale of two special permits for hydrocarbon production. The State Service of Geology and Subsoil has implemented two special permits for the development of hydrocarbons valued at UAH 395 mln at an electronic auction. The permits relate to plots located in the Romensky district of the Sumy region, Myrhorod and Poltava districts of Poltava region. One of the permits were awarded to JSC Ukrgazvydobuvannia for UAH 304.6 mln ($11.6 mln). The second permit was awarded to Horizons LLC
GTS Ukraine operator has applied for participation in the process of certification of the Nord Stream-2 operator. On Wednesday, October 20, it submitted an application to the German energy regulator (Bundesnetzagentur) to participate in the certification procedure of Nord Stream-2 AG. “We continue to strongly oppose this geopolitically dangerous project, which threatens Ukraine’s national security, destroys Europe’s energy architecture, and seeks to circumvent EU rules”, stated the company’s website.
Thursday, October 21
The level of the Electricity imports since April 2021 has been extremely low, reported Ukrenergo. In September, the total volume of imports of 0.028 million kWh. The lowest amount since the commencement of the new market in July 2019. Electricity exports have also continued to decline since July 2021, and amounted to 304.3 million kWh. For the first nine months of 2021, the volume of electricity exports exceeds imports by more than 2.7 times – 2,779 million kWh against 1,014 million kWh.
Ukraine can become a storage platform for storing gas for the EU. Underground gas storage facilities are ready to provide 40% of the gas capacity of non-resident customers, including the storage of insurance reserves of “blue fuel” said Serhiy Pereloma, the General Director of Ukrtransgaz on its Facebook page. “The gas crisis of 2021 has once again drawn the EU’s attention to the issue of insurance reserves. The European Commission is looking for tools to implement such a plan and potential sites for long-term storage of large volumes of gas”, said Pereloma.
Naftogaz signed the first three memorandums during the Ukrainian Gas Investment Congress in Kyiv. The first memorandum was signed with Ireland Dragon Oil on the exploration and development of deposits in the Black Sea. The second memorandum with the Azerbaijani oil producer Socar, the develop technologies for exploration and production activities in Ukraine both on land and at sea. The third memorandum was signed with US firms Helmerich & Payne and 3 Seas Energy, a partnership to explore and develop its business in the Black Sea Basin, reported Naftogaz.
Wednesday, October 20
The State Service of Geology and Subsoil sold 200 lots at electronic auctions, half of which were sold in 2021. During a speech at the VI Kyiv conference “Newfolk NCC”, the head of Gosgeonadr Roman Opimakh stressed that for a year and a half the service provided subsoil users with 50 thousand sq/km of gas-bearing areas both on land and on the shelf.
Tuesday, October 19