This summer, European traders have contracted only a small portion of Ukrainian gas storage capacity following Russian attacks. The FT notes that increased risk and a lack of price incentives have reduced the Ukrainian facilities’ attractiveness.
According to Argus, in June and July European companies sent 15.4 million and 51.9 million cubic meters to Ukrainian gas storages, respectively, against 102.7 million and 586.6 million cubic meters in June and July 2023. Although the gas reservoirs themselves are located deep underground, damage to the above-ground injection facilities is a significant risk that worries traders.
“The main problem is not the loss of gas, but the impossibility of extracting it when it is needed and in demand,” the Axpo energy group explains.
For its part, Naftogaz states that gas injection and extraction by foreign traders is being carried out normally. They admitted that the pumping rates have decreased somewhat, but last year the peak of pumping fell exactly from August to September, and the season lasted until October.