As reported by the Financial Times, western Ukraine's gas storage facilities have been targeted several times in recent months, but only surface structures have been damaged. The underground storages, located up to 3 km beneath the surface, remain intact.
“Technologically, we’re all fit, and we have managed to repair the [damaged surface] equipment and we fulfil our obligations [to our European customers],” the article quotes Chernyshov.
Three attacks on gas storage facilities have been reported since March, marking the first known instances of Moscow targeting these sites.
Ukraine provides a transit path to Europe for Russian pipeline gas. Last winter, as EU silos were filled to capacity, Ukrainian underground gas storage facilities (UGSF) offered European traders the option to store excess gas.
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Chernyshov's comments come after U.S. President Joe Biden signed a bill providing $61 billion in new aid to Ukraine. However, European allies are still negotiating the supply of additional air defense systems, even as Russian attacks on Ukrainian energy infrastructure intensify.
According to Chernyshov, U.S. assistance will undoubtedly strengthen Ukraine's defense capabilities, but "a very significant number of air defense systems" is required for further protection of infrastructure and assets.
“We might remain in a position where we would still need more air defense,” Chernyshov adds.
“EU countries, of course, should play a crucial role in that assistance.”
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Chernyshov noted European interest in using the Ukrainian UGSF this year. Naftogaz expects to increase the volumes of European natural gas stored in Ukraine from 2.5 billion cubic meters in 2023 to 4 billion by this winter.
Ukraine continues to allow Russian gas transit through its territory based on a 2019 agreement between Naftogaz and Russia's Gazprom. However, after the 2022 invasion of Ukraine, Russia significantly reduced its gas supply to Europe via this route. Russian gas transiting through Ukraine now accounts for less than 5% of total deliveries to the EU.
Naftogaz's contract with Gazprom expires at the end of this year. Chernyshov stated that the company will not renew it, likely resulting in no Russian gas transit through Ukraine by 2025, forcing countries like Austria and Slovakia to seek alternative sources.
“The reason why Naftogaz has continued with this transit deal [even during the war] is to satisfy the EU’s gas needs…,” Chernyshov said.
He added that the revenue Naftogaz receives from Gazprom do not cover the cost of organizing this transit, as Gazprom has not paid the full price almost since the beginning of the invasion, resulting in a consistently negative cash flow for Naftogaz from this operation.
Most analysts and traders believe that record levels of gas in EU storage will prevent a shortfall next winter.
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Read the original article on The New Voice of Ukraine
Section: Nation
Author: Eric Malinowski
