Why have Ukrainian gas reserves fallen to a record low?

According to an analysis by DiXi Group, Ukraine has not yet fully transitioned to self-sufficient gas supply through domestic production.

“Due to the full-scale war, demand for blue fuel decreased by 33%. However, this decline wasn’t significant enough for the existing production, which has also diminished somewhat due to the war, to meet consumption,” the experts noted.

In 2023, gross consumption was 21.4 billion cubic meters, while production was only 17.84 billion cubic meters.

“Therefore, we continue to be a deficit market with a considerable share of unmet demand, roughly 16%,” the experts stated.

Meanwhile, in 2023/2024, Ukraine ceased external supplies in favor of more active gas withdrawals from storage facilities. By the end of last season, Ukrainian underground gas storage facilities held 3.34 billion cubic meters of gas, the lowest level in at least the last decade. Despite this, authorities hope to get through the 2024/2025 heating season without additional imports. To do this, at least 6.6 billion cubic meters of gas must be pumped into storage facilities this year.