popular articles

Ukraine seeks to revive European interest in its gas storage

Facing declining interest from European companies in its gas storage capacity, state-owned operator UkrTransGaz is focusing on integrating into the European Union market and implementing measures to strengthen the competitiveness of its infrastructure despite security challenges.

Please share:

Ukraine has the largest gas storage capacity in Europe, estimated at approximately 31 billion cubic meters (Bcm). These facilities have historically attracted European players looking to store excess gas. However, the situation changed in 2024, marked by a significant drop in the volume of gas stored by foreign companies due to the ongoing conflict.

Reduced attractiveness due to security concerns

In the spring of 2024, several Ukrainian storage sites were targeted by missile and drone strikes, leading European traders to withdraw. According to former CEO of gas transmission operator GTSOU, Sergiy Makogon, security concerns contributed to a collapse in the volume of foreign-stored gas. While non-resident companies stored 2.5 Bcm of gas in 2023, these levels became negligible in 2024.

This situation was exacerbated by the reduced profitability of storage, due to a narrower spread between summer and winter gas prices. The evolving dynamics of the European market have thus lowered the incentive for companies to store gas in Ukraine.

UkrTransGaz bets on European market integration

In this context, UkrTransGaz is working to restore investor confidence and reaffirm Ukraine’s role in the European gas market. The company has emphasized its commitment to improving the efficiency of its storage infrastructure while seeking to strengthen cooperation with international partners.

In a statement published on February 4, the operator highlighted the necessity of attracting foreign customers and optimizing the performance of its facilities. Integration into the European market remains a strategic priority, with the goal of maximizing the utilization of available storage capacity.

Sufficient stocks but underutilized capacity

Despite the reduction in foreign deposits, state-owned energy company Naftogaz has assured that Ukraine has sufficient reserves to cover its winter needs. Data from Gas Infrastructure Europe (GIE) indicated that as of February 3, Ukrainian working gas stocks stood at 34.4 terawatt-hours (TWh), or about 3.2 Bcm. This represents just over 10% of the country’s total capacity.

However, projections for the 2025-2026 winter highlight a major challenge: the need to import up to 3 Bcm to replenish reserves, according to Sergiy Makogon. Ukraine is therefore striving to balance its domestic production with its import needs while limiting reliance on European markets, where prices remain high.

A gas sector under pressure

Despite a difficult environment, Ukrainian gas production increased in 2024, reaching 19.1 Bcm compared to 18.7 Bcm in 2023. This growth reflects Kyiv’s efforts to strengthen its energy autonomy. However, infrastructure remains vulnerable to attacks. On January 15, a large-scale assault targeted energy sites, affecting storage facilities.

The resilience of Ukraine’s gas network and its ability to secure its infrastructure will be key factors in attracting European players back. UkrTransGaz is relying on technical guarantees and better integration into European market dynamics to convince companies to return.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.
Ukraine will receive a €270 million loan from the European Bank for Reconstruction and Development, backed by a Norwegian grant, to secure gas imports over two winters.
Ukraine will receive a €270 million loan from the European Bank for Reconstruction and Development, backed by a Norwegian grant, to secure gas imports over two winters.
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
Russian attacks on Ukrainian gas infrastructure have halved national production, pushing Kyiv to seek alternative import sources to secure winter supply.
Russian attacks on Ukrainian gas infrastructure have halved national production, pushing Kyiv to seek alternative import sources to secure winter supply.
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
Ecopetrol is developing a strategy to ensure the continuity of its offshore gas projects in the Caribbean following Shell's strategic withdrawal.
Ecopetrol is developing a strategy to ensure the continuity of its offshore gas projects in the Caribbean following Shell's strategic withdrawal.
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
Morocco is implementing a liquefied natural gas (LNG) terminal project at Nador West Med to diversify its energy supply sources and reduce its dependence on coal.
Morocco is implementing a liquefied natural gas (LNG) terminal project at Nador West Med to diversify its energy supply sources and reduce its dependence on coal.
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
TotalEnergies expands its liquefied natural gas portfolio with a long-term supply deal in Texas and a sales contract to the Dominican Republic starting in 2027.
The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.

Advertising