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Ukraine plans to borrow $1 billion to buy gas, fuel oil for reserves

http://en.interfax.com.ua/news/economic/394995.html
Public joint-stock company Ukrtransgaz has permitted national joint-stock company Naftogaz Ukrainy and private enterprise ERU Trading to participate in a tender to buy 2.5 billion cubic meters (bcm) of gas for industrial needs, according to a report in the ProZorro e-procurement system.

The expected cost of gas is UAH 17.048 billion.

Bids from UICE Group, Naftogazgroup Demetra LLC and ESKO-Pivnich LLC were dismissed.

"The bids did not contain document confirming enough gas stocks," the company said.

On December 30, Naftogazgroup Demetra LLC filed a claim against the decision to dismiss its bid.
 
http://en.interfax.com.ua/news/economic/395776.html

Gas pumping from Ukraine's underground gas storage facilities this heating season is 3.27 billion cubic meters (bcm) and this is 19% less than a year ago (4.07 bcm), the press service of Naftogaz Ukrainy has reported.

"Gas pumping from underground gas storage facilities this winter is 19% less than last winter (and 45% less than in 2014/15 season). This year the weather is colder," the company said on its Facebook page.

Naftogaz Ukrainy unites oil and gas production assets in Ukraine, and is the country's gas transit, underground gas storage, and oil pipeline transportation monopoly.
 
http://en.interfax.com.ua/news/economic/396055.html

Ukrainian companies imported gas for their own needs at an average price of UAH 6,006.66 ($230.01) per 1,000 cubic meters in December 2016, the press service of the Ministry of Economic Development and Trade has said.

According to the ministry, the average price of imported gas in January was $231.41 (UAH 5,542.82), in February – $200.39 (UAH 5,352.03), in March – $198.57 (UAH 5,292.39), in April – $188.08 (UAH 4,795.87), in May – $181.50 (UAH 4,595.10), in June - $184.30 (UAH 4,595.21), July - $210.88 (UAH 5,233.264), August – $199.1 (UAH 4,981.339), September – $199.61 (UAH 5,255.29), and October – - $180.55 (UAH 4,652.17) and November - $188.93 (UAH 4,866.26).

Earlier Commercial Director of Naftogaz Ukrainy Yuriy Vitrenko said that the average customs price of gas imported to Ukraine published by the ministry is not representative.
 
http://en.interfax.com.ua/news/economic/396255.html

Private joint-stock company Naftogazvydobuvannia, part of DTEK Naftogaz, increased natural gas production by 25.3% or 328.8 million cubic meters (mcm) compared to 2015, to 1.631 billion cubic meters (bcm), the company's press service has reported.

Gas condensate production in 2016 totaled 56,100 tonnes, and this was 24% up on 2015.

The launch of three wells at the Semyrenkivske gas condensate field contributed to growth of gas and gas condensate production. Workover was carried out at four wells of the field

In addition, measures to intensify production at operating wells were conducted last year.

As reported, Naftogazvydobuvannia in 2015 increased gas production by 1.7 times compared to 2014, to 1.302 bcm and gas condensate – by almost 1.6 times, to 45,000 tonnes.

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http://en.interfax.com.ua/news/economic/396116.html

"According to the report of Engie, the daily volume of gas supplies is nearly 400,000 cubic meters," reads a press release of the Ukrainian GTS operator.

Ukrtransgaz said these gas volumes are imported from Poland via the Germanovichi gas metering station.

The company noted in the middle of December 2016 Engie successfully conducted tests of natural gas supplies.

As reported, at the end of October 2016 Ukrtransgaz and Engie signed agreements on cooperation in transportation and storage of natural gas in Ukrainian underground gas storage facilities (UGS), whereby Engie gained the possibility to store gas in Ukrainian UGS.

Ukrtransgaz's parent company, Naftogaz Ukrainy, said signing such framework agreements would enable Engie to independently supply gas to Ukraine with the possibility of further direct sales to Ukrainian traders and consumers, for which Engie has set up a subsidiary, Engie Management Ukraine LLC.

The subsidiary's core business will be imports, transportation, storage and sale of gas in the interests of major industrial consumers.

"The potential second step is trade on the electricity market," it said.

Engie supplied about 3.5 billion cubic meters of gas to Ukraine in 2015, which was delivered primarily to Naftogaz.

Ukrtransgaz, a 100% subsidiary of Naftogaz Ukrainy, operates Ukraine's trunk gas pipeline system, as well as its 12 underground gas storage facilities with combined capacity for 31 bcm.

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14:39
DPR hands bodies of 3 deceased Ukrainian servicemen over to Ukraine

14:34
Three Ukrainian soldiers wounded near Popasna in Donbas

13:50
DPR reports nearly 5,000 attacks on its positions in past week

12:11
Third of Ukrainians want to legally possess weapons, quarter aspire to carry them - poll
 
http://en.interfax.com.ua/news/economic/400680.html
The entire installed generating capacity of equipment operating in the Ukrainian power grid in 2016 grew by 505.6 MW, to 55,331 MW, the press service of national energy company Ukrenergo has reported.

The figure takes into account 3,943 MW of generating facilities located in the occupied areas of Donbas.

Unit three of Dnistrovska hydroelectric pumped storage power plant with the installed capacity of 324 MW was launched last year.

Unit two of Trypilska thermal power plant (TPP) with the generating capacity of 25 MW, unit six of Burshtyn TPP (10 MW), unit five of Burshtyn TPP (7 MW) and units of large hydroelectric power plants (HPPs) were reconstructed.

Last year new solar power plants with the installed generating capacity of 98.8 MW, wind farms (11.6 MW), biofuel power plants (10.2 MW), new and restored HPP (2.8 MW) were launched.

Cogeneration unit with the capacity of 2.5 MW was launched last year and the capacity of one of the gas-fueled reciprocating power plants was increased by 3.9 MW.

However, Alzhyhorska wind farm with a capacity of 0.65 MW was dismantled.

In 2016, the share of TPP of the total installed generating capacity of Ukrainian power grid was 50.3% (27,845 MW), nuclear power plants (NPPs) – 25% (13,835 MW), combined heat and power plants (CHPP) – 11.7% (6,469 MW), HPP – 8.5% (4,711 MW).
 
http://en.interfax.com.ua/news/economic/401361.html

Oil transit through Ukraine to Europe declined to 1.326 million tonnes in January 2017, 13.5% or 157.3 million tonnes more than in the same period last year, Ukrtransnafta has reported.

Oil shipment to refineries in Ukraine in January 2017 totaled 117,400 tonnes.

In other words, transit shipments accounted for 91.9% of all crude oil transportation and refinery supplies accounted for 8.1%.

As reported, oil transit through Ukraine to Europe declined to 13.822 million tonnes in 2016, 8.8% or 1.331 million tonnes less than in the same period last year. Oil shipment to refineries in Ukraine in 2016 declined by 12.5% or 200,800 tonnes to 1.406 tonnes.

Ukrtransnafta, 100% of whose shares are in the trust management of Naftogaz Ukrainy, is the operator of the national oil transportation system.

Ukrtransnafta's trunk oil pipeline system, which includes pipes from 159 mm to 1,220 mm in diameters, stretches 4,767 kilometers and through 19 Ukrainian regions. It has annual capacity to accept 114 million tonnes for shipment and to supply 56.3 million tonnes to Europe.

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http://en.interfax.com.ua/news/economic/401359.html

Ukraine in January 2017 imported coal and anthracite (foreign activity code 2701) worth $170.897 million.

According to the State Fiscal Service, Russia supplied coal for $114.59 million, the United States for $24.856 million, Kazakhstan for $15.127 million, other countries for $16.324 million.

Thus, in money terms imports of coal and anthracite last month grew by 61.3% compared to January 2016 ($105.943 million).

Ukraine in January 2017 exported 45,741 tonnes of coal and anthracite for $3.898 million, in particular to Turkey for $2.566 million, Slovakia for $838,000, Bosnia and Herzegovina for $251,000, and other countries for $242,000.

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Gas stocks in Ukraine's underground storage facilities declined by 35% to 9.580 billion cubic meters (bcm) since October 13, when the current heating season began, through February 4.

Ukraine withdrew 58.89 million cubic meters (mcm) from underground storage on February 4 and a total of 304.63 mcm in the first four days of February (75.16 mcm/day on average), Ukrtransgaz, which operates the country's pipelines and storage facilities, said in a statement.

Withdrawals amounted to 2.102 bcm in January (67.8 mcm/day on average), 1.569 bcm in December (50.6 mcm/day) and 909.42 mcm in November (30.31 mcm/day).

Last year, Ukraine withdrew 35.4 mcm of gas from underground storage on February 4, when stocks amounted to 10.915 bcm. It withdrew 45.3 mcm on February 4, 2015, when stocks totaled 9.126 bcm.

As of February 4, 2017, daily imports of gas were 47.859 mcm, of which 40.597 mcm from Slovakia, 3.548 mcm from Hungary and 3.714 mcm from Poland. Ukraine has not imported gas from Russia since November 26, 2015.

Gas production in Ukraine on February 4 was 56.685 mcm, of which Ukrgazvydobuvannia produced - 40.864 mcm, Ukrnafta - 3.337 mcm and other companies - 12.484 mcm. Overall production in the first four days of February was 227.095 mcm.

Transit via Ukraine's gas transport system was 1.170 bcm in the period February 1-4, corresponding to a monthly rate of about 8.2 bcm.
 
http://en.interfax.com.ua/news/economic/404581.html

Detectives from the National Anti-Corruption Bureau of Ukraine (NABU) have finished their pretrial investigation of a criminal case involving nine individuals in the so-called "gas case."

NABU's press service on Friday said the case involves nine individuals who are not on the wanted list.

"Three of them are employees of the Public Joint-Stock Company Ukrgazvydobuvannia and six are representatives of joint venture operator companies controlled by Verkhovna Rada of Ukraine deputy Oleksandr Onyshchenko. He is suspected of organizing a corrupt scheme to steal money through the extraction of natural gas and sale under cooperation agreements with Ukrgazvydobuvannia. As a result, the state was bilked for some UAH 3 billion," the statement reads.

Ukraine's Security Service has opened its own investigation into the shenanigans after receiving information about possible state treason.

Suspects have open access to the results of the pretrial investigation.

As earlier reported, NABU detectives began their investigation in December 2015. They identified 27 suspects. Nine suspects have admitted their guilt and made plea bargains. Nine more suspects, including Onyshchenko, are on the wanted list.

Onyshchenko on August 8, 2016 was put in the national wanted list after Ukraine's parliament stripped him of immunity from prosecution. The issue of issuing an international arrest warrant is currently being processed.
 
http://en.interfax.com.ua/news/economic/405254.html

Gaz-System S.A., the operator of the Polish gas transportation system, has selected PGNiG Technologie S.A. as a contractor for building the Strahocina-Germanovichi gas pipeline, according to Gaz-System's website.

According to the report, the pipeline with a length of 72 km will be part of the eastern branch of the North-South corridor and is important for integration of the gas transportation systems of Poland, Slovakia and Ukraine.

It is planned within the project to reconstruct the Germanovichi point, from which in future it is planned to build the Germanovichi (Poland)-Bilche-Volytsia (Ukraine) interconnector.

It is planned to complete building the Strakonice-Germanovichi gas pipeline in 2019, the project cost is PLN 288 million (nearly UAH 2 billion).

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http://en.interfax.com.ua/news/economic/405255.html
The Ministry of Energy and Coal Industry of Ukraine has established state enterprise Ukrainian Fuel and Energy Company.

The corresponding decision is stipulated in decree No. 145 of Energy Minister Ihor Nasalyk dated February 23.

The enterprise was set up taking into account the proposals of the oil and gas complex department of the ministry.

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http://en.interfax.com.ua/news/economic/406630.html

Ukraine imported 1.4 billion cubic meters (bcm) of natural gas for the needs of Ukrainian consumers from Europe in February 2017. This was 13% more than in February 2016, the public and media relations department of Ukrtransgaz has reported.

"A total of 2.9 bcm of gas was imported to Ukraine from the EU in the first two months. Traditionally most of gas was imported using the Slovakia route – 2.5 bcm," the company said.

According to the tentative information of the central dispatch department, daily imports of natural gas from Europe are 50 million cubic meters (mcm).

As reported, national joint-stock company Naftogaz Ukrainy in March 2017 plans to import at least 40 mcm of gas a day from Europe via Slovakia and in April imports volumes would be sharply cut.
 
https://www.unian.info/society/1804457-explosion-reported-at-coal-mine-in-lviv-region.html
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At the moment of the blast, 172 miners were working at the mine.

The State Emergency Service on Thursday reported an explosion at mine No. 10 Stepova of JSC Lvivvuhillia in the village of Hlukhiv in Lviv region’s Sokalskiy district

It is noted that the explosion occurred at the depth of 550 meters, resulting in an internal collapse of the rock.

Of 172 miners on shift, 34 people were working at an emergency site. Eight people have been killed in the blast, according to the incoming reports and another six were injured and brought to the surface.

The fate of another 20 miners remains unknown.

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https://www.unian.info/economics/18...ng-polish-lawsuit-over-opal-gas-pipeline.html

National oil and gas holding company Naftogaz of Ukraine has applied to the European Court of Justice with a request to grant it a right to join the claim of the Polish company PGNiG, which challenged the decision of the European Commission on expanded access for the Russia's gas monopoly Gazprom company to the European gas pipeline OPAL, according to Naftogaz's press service.

"Naftogaz has applied to the General Court of the Court of Justice of the European Union (CJEU) with a request for leave to intervene in the case initiated by PGNiG Supply & Trading (PGNiG ST) which challenges the decision of the European Commission of October 28, 2016 in respect of the OPAL pipeline. The decision effectively enables Gazprom to significantly increase the use of OPAL capacity and deliver more gas through Nord Stream," the press service reports.

It is also noted that, according to the Statute of the European Court of Justice, a legal entity may join a case before the court when it can prove an interest in the result of a case submitted to it.

"Naftogaz has applied for intervention with the reference to the court’s previous jurisprudence and potential negative consequences of the European Commission's decision for the company, namely decrease in natural gas transit through Ukraine, threat to the stability of gas supplies to Ukraine because of possible interruption of gas flows from Poland," the press service said, adding that the decision of the European Commission also leads to deterioration of Naftogaz's competitive position.

Moreover, joining the case initiated by PGNiG will enable Naftogaz to present additional arguments and gain access to the case files. As UNIAN reported earlier, the European Commission's decision to grant the Gazprom additional access to 30% of the OPAL pipeline capacity (with existing 50%), allowing combination of the Nord Stream capacity with the gas transportation system in Central and Western Europe, bypassing Ukraine, will lead to financial losses for the country as a key transit of gas to Europe in the amount of at least $290-320 million per year and transit reduction by 10-11 billion cubic meters of gas per year.

This decision was appealed to the European Court of Justice by the Polish oil and gas company PGNiG. According to PGNiG, the court suspended the decision on Gazprom's access to the OPAL gas pipeline on December 27, 2016.

February 28, 2017, Naftogaz Chief Commercial Officer Yuriy Vitrenko announced the company's plans to join the lawsuit filed by PGNiG.

Opal-pipeline.jpg


http://en.interfax.com.ua/news/economic/406666.html

Ukraine imported 2.82 billion cubic meters (bcm) of gas from Europe in January-February 2017, up 30% year-on-year, the gas pipeline operator Ukrtransgaz has said.

Interfax-Ukraine calculates that this included 2.408 bcm of gas from Slovakia, 179.9 million cubic meters (mcm) from Hungary and 232 mcm from Poland.

Ukraine imported 1.37 bcm of gas from Europe in February alone, up 9% from 1.254 bcm in the same month last year.

Daily imports of natural gas from Europe are averaging at 50 mcm, according to preliminary information.

Ukraine is only importing gas via its western border - it has not imported gas from Russia's Gazprom since November 26, 2015.

Ukraine slashed gas imports 32.7% last year compared with 2016 to 11.078 bcm.

http://en.interfax.com.ua/news/economic/406683.html

Public joint-stock company Odesa Port-Side Plant is resuming its operations after a two-month idle period, First Deputy Board Chairman Mykola Schurikov has said.

"Today we have started the launch of the plant! The tolling scheme is used now. We are working on all possible options," he wrote on his Facebook page.

As reported, after two failures to privatize the plant at the end of December 2016 the plant decided to temporarily suspend operations due to high prices of natural gas and accumulated debts for its supplies.

The company said that it is looking for companies interested in leasing of its property complex for a long period of time.

In February 2017 the shareholders of the plant gave preliminary consent on the leasing of the plant's property.

The shareholders also approved the debt restructuring to Naftogaz Ukrainy in equal parts during two years without interest accrued.

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Construction of Odessa Port Plant had begun as far back as 1975, and since1978 the Plant has been putting out its products. The principal purpose of the enterprise is production of ammonia, urea and of some other chemical by-products.

They come to OPP transshipment terminals by railway or through a 2471 km long pipeline Togliatti-Gorlovka-Odessa.
 
http://en.interfax.com.ua/news/general/407134.html

Ukraine's Cabinet of Ministers has provided UAH 500,000 of assistance to families of coalminers killed in the Stepova coalmine blast in Lviv region and UAH 75,000 to injured miners.

An Interfax-Ukraine correspondent has reported that the decision was made at a government meeting on Friday.

A total of UAH 5.05 million will be provided from the reserve fund of the national budget to Lviv Regional Administration.

As reported, the rock collapsed in a blast at the Stepova coalmine of the Lvivvuhillya company in the village of Hlukhiv, Sokal district, Lviv region in the afternoon on March 2. As many as 172 miners were worked in the coalmine at the time, eight of them died in the explosion.
 
http://en.interfax.com.ua/news/economic/407607.html

PJSC Ukrtransgaz has started restriction of gas supply to PJSC Rivneazot, PrJSC Severodonetsk Azot and PJSC Azot (Cherkasy), head of the PR department at Ukrtransgaz Maksym Beliavsky has said.

"We've started the procedure of limiting gas supply to three chemical companies: Rivneazot, Cherkasyazot, and Severodonetskazot. The reason is the debts of counterparties and a lack of confirmed volumes of gas in the GTS," he wrote on his Facebook page.

Ostchem is managing company that coordinates the work of nitrogen chemistry companies belonging to Group DF of Dmytro Firtash. The group consolidates the assets of nitrogen chemistry and includes nitrogen fertilizer enterprises PJSC Azot (Cherkasy), PJSC Rivneazot, PrJSC Severodonetsk Azot (Luhansk region) and PJSC Stirol Concern.

http://en.interfax.com.ua/news/economic/407610.html

Public joint-stock company Ukrtransnafta will be ready to start pumping Azeri oil to Kremenchuk oil refinery (public joint-stock company Ukrtatnafta) from March 10, Ukrtransnafta First Deputy Director General Andriy Pasishnyk has told Interfax-Ukraine.

"Some 17,000 tonnes of Urals left to remove. It will take three days. We are ready to accept Azeri Light on March 10," he said.

Pasishnyk said that today 193,000 tonnes out of 210,000 tonnes of Urals oil has been removed.

Ukrtransnafta and Ukrtatnafta on November 3, 2016 signed a contract on supply of at least 1.3 million tonnes of Azeri Light oil a year to Kremenchuk oil refinery from 2017. The document envisages the resumption of the Odesa-Kremenchuk oil pipeline section that was idle for around five years.

Under the contract Ukrtransnafta arranged pumping of Urals oil from the Odesa-Kremenchuk oil pipeline to railway tankers and eventually pump it to the second line of the Druzhba oil pipeline.

Pasishnyk said that the contract with Ukrtatnafta on transportation of Azeri oil has guarantees: if the volumes of transportation decrease Kremenchuk oil refinery will compensate all expenses for replacement of Urals oil to Azeri Light to Ukrtransnafta.

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http://en.interfax.com.ua/news/economic/407809.html

Germany wants the Nord Stream-2 project to be implemented, but it also sees the need to ensure the reliability of gas transit through Ukraine and gas supplies to Slovakia, the Czech Republic and Poland, German Foreign Minister Sigmar Gabriel said.

"The Russian side has known my attitude to this issue for many years already: we need Nord Stream-2, but we also need the reliability of Ukrainian pipelines and the reliability of energy supplies to countries such as Slovakia, the Czech Republic and Poland. And I sense that our Russian partners are quite ready for that," Gabriel said in an interview with Interfax.

When commenting on a February 21 meeting between the Nord Stream-2 project's management and European Commission representative, he said: "Nord Stream-2 is not a project of the European Commission. Rather, it is an investment decision of European privately-owned companies. It is important to us that this project should be implemented and should function in compliance with the EU's existing legislation. We will keep an eye on that in the future as well. The exchange of opinions between the European Commission and the companies involved is seen as the right step for that."

"We in Europe are interested in the reliable and long-term supply of energy resources. Nord Stream-2, as an additional route, may contribute to steps aimed at achieving this goal," he said.
 
http://en.interfax.com.ua/news/economic/408529.html

Ukraine from March 9, 2017 finished pumping natural gas from underground storage facilities and started pumping gas into them.

According to current data from public joint-stock company Ukrtransgaz, on March9 through March 11 net pumping into inventories exceeded net pumping from inventories by 11.32 million cubic meters (mcm). In particular, on March 9, March 10 and March 11 pumping into inventories was 3.73 mcm, 4.97 mcm and 4.63 mcm, while pumping from inventories was 960,000 cubic meters, 510,000 cubic meters and 540,000 cubic meters.

Thus, since the start of the heating season started on October 13, 2016 and as of March 8, 2017 (inclusively) Ukraine cut natural gas stocks in underground storage facilities by 44.5% or 6.552 bcm, to 8.18 bcm.

As of March 11, 2017, 8.192 bcm of natural gas was in underground storage facilities of Ukraine with the lowest limit of around 5 bcm.

"I cannot but remember how it was said in autumn that we were to buy and pump 2.5 bcm of gas more. If we agreed to this then, now there were 10.5 bcm of gas in storage facilities or 5.5 bcm more than the comfort level. I understand that the stock would not burn the pocket, but an additional 2.5 bcm of gas is around $500 million," Naftogaz Ukrainy Commercial Director Yuriy Vitrenko wrote on his Facebook page.

As of March 11, 2017, daily imports of gas were 43.735 mcm, of which 39.239 mcm from Slovakia, 1.399 mcm from Hungary and 3.097 mcm from Poland. Ukraine has not imported gas from Russia since November 26, 2015. It imported a total of 429.472 mcm on March 1 through March 11.

Gas production in Ukraine on March 11 was 57.677 mcm, of which Ukrgazvydobuvannia produced 41.633 mcm, Ukrnafta - 3.433 mcm and other companies - 12.611 mcm. Overall production on March 1 through March 11 was 633.5 mcm.

Transit via Ukraine's gas transport system was 2.33 bcm in the period March 1-11, corresponding to a daily rate of about 211.8 mcm.

Naftogaz Ukrainy officials said the gas stocks are sufficient to make it through the heating season and, if the winter is more severe than expected, Ukraine has the capacity to increase imports. Naftogaz calculates that stocks will end the heating season in the range 7-8 bcm, compared with the minimum allowable level of 5 bcm.

Withdrawals in 2016 exceeded injections by 2 bcm: 8.391 bcm was withdrawn and 6.389 bcm was injected.

Ukrtransgaz, a wholly owned subsidiary of Naftogaz Ukrainy, operates the country's gas pipelines and 12 underground gas storage facilities with a total capacity of 31 bcm.
 
http://en.interfax.com.ua/news/economic/409774.html

Ukraine's Cabinet of Ministers has approved a project on construction of the second stage of Dnistrovska hydroelectric pumped storage power plant, consisting of unit four.

The decision was made at a government meeting on Thursday.

As reported, the hydroelectric generation development program until 2026 approved by government resolution No. 552-r dated July 13 envisages the start of construction of unit four in 2017 and its completion in 2020.

According to preliminary calculations it will cost UAH 2.796 billion. The capacity of the unit will be 324 MW in generating mode and 421 MW in pumping mode.
 

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