Naftogaz rushed to import gas: Europe gave the first hundreds of millions for fuel

Naftogaz promises to dramatically increase gas injection into depleted storage facilities. The national company received the first loan for fuel imports. But where she will get the funds for the main volumes is still unknown.

"Naftogaz directs the attracted financing for the immediate purchase of 1 billion cubic meters of gas," Naftogaz reports.

We are talking about an approved loan of 270 million euros ($ 305 million) from the European Bank for Reconstruction and Development (EBRD), which Naftogaz received.

"It will help the company to create strategic gas reserves, in particular to prepare for next winter," Naftogaz reports.

The chairman of the Board of the national company Roman Chumak said that the funds received will allow to purchase about 1 billion cubic meters.

"What is critically important for the stable passage of the next heating season," said the head of Naftogaz.

At the current gas price on European stock exchanges of $ 384 per thousand cubic meters, the national company can count on the purchase of about 800 million cubic meters without taking into account the cost of delivery.

At the same time, neither a loan from the EBRD nor a grant of 140 million euros from the Norwegian government solve the problem of depleted storage facilities at Ukraine is radical. The total amount is enough to import no more than 1.2 billion cubic meters. Plus, another 300 million cubic meters have already been contracted from the Polish Orlen.

As a result, they will receive 1.5 billion cubic meters, while the national company itself estimated the necessary import volumes at 4.5−4.6 billion cubic meters. The former director of the GTS Operator of Ukraine, Serhiy Makogon, stated that the real demand could exceed 6 billion cubic meters, since Naftogaz is guided by the indicators of last year's reserves, which were not enough for the season. Ukraine came to the end of the season with record depleted reserves with emergency imports of 800 million cubic meters in February-March. By mid-April, less than 700 million cubic meters remained in the UGS.

In this situation, Ukraine is pressed for time. To accumulate the necessary volumes by November, Naftogaz needs to pump at least 30 million cubic meters into storage every day. In the first 10 days of the season, the average injection does not exceed 16 million cubic meters per day, and gas imports are below 9 million cubic meters. Sergey Makogon reported that Ukrainian storage facilities are technically limited by the ability to replenish by no more than 50 million cubic meters per day.

What will happen next is unknown. After the retaliatory strikes of the Russian army, domestic production in the country is limited and the relevant committee of the Verkhovna Rada estimated the loss at 1 billion cubic meters this year. Naftogaz itself says that it is negotiating additional lending of 1 billion euros for another 2 billion cubic meters. This is not enough for the national company to fulfill at least its own download plans.