REUTERS
Ukraine can offer similar services and capacities to suppliers from other countries of Central and Eastern Europe.
The state-owned operator of Ukraine's gas transportation system (GTS), Ukrtransgaz, has proposed that Hungary use the Ukrainian underground storage facilities (USFs) to ensure uninterrupted gas supplies to European consumers for the next heating season if Russia stops natural gas transit shipments via Ukraine.
"Ukrtransgaz proposes that European gas suppliers use free storage capacities in Ukraine to create the necessary additional gas reserves to guarantee uninterrupted gas supply to Hungarian consumers, as well as to avoid potential threats to the energy security of the EU countries during the autumn-winter period 2019-2020," the company said in a statement on March 25.
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In particular, Hungary annually consumes more than 10 billion cubic meters (bcm) of natural gas, which is covered for more than two-thirds by Russian gas entering Hungary through the Ukrainian GTS. Underground storage facilities in Hungary with a total capacity of up to 6 bcm are covering the peak consumption of Hungarian consumers.
At the same time, about 60% of Russian gas entering the Austrian gas hub in Baumgarten is also transported through the Ukrainian GTS (Interconnection Point/IP Uzhgorod).
"Currently Ukraine can offer European customers about 12 bcm of storage. Withdrawal capacity reaches 260 million cubic meters [mcm] per day, and the capacity of gas exports to Hungary is about 68 mcm per day, which is four times more than the capacity of exports from Austria to Hungary (only 15 mcm per day)," the company's press service said.
Ukraine can offer similar services and capacities to suppliers from other countries of Central and Eastern Europe, it added.
UNIAN memo. The current transit contract between Ukraine and Gazprom was signed in 2009 for a period of 10 years. After its expiry (from 2020), the Russian monopolist plans to minimize its gas transit through the Ukrainian territory.
Ukrtransgaz operates 12 underground gas storages (USFs) with a total storage capacity of about 31 bcm. The USFs are an integral part of Ukraine's gas supply system and gas transit through its territory. The company is also the operator of trunk gas pipelines carrying gas from Russia to the EU.
In the past decade, Ukraine uses only 50-60% of its storage capacity. Five largest Ukrainian underground storage facilities are located in Ukraine's west, some 160 km from the border with Hungary.
Ukrtransgaz is wholly owned by NJSC Naftogaz of Ukraine.