Ukraine to increase gas imports after Russian missile attacks on gas infrastructure - Bloomberg
Photo: Gas imports to Ukraine will increase next season (Getty Images)
Ukraine intends to increase natural gas imports next season as its own production capacity is hit by Russian drones and missiles, Bloomberg reports.
The government estimates that it will need about 3.5 bcm of imports to meet domestic demand in the next heating season, said an energy official familiar with the calculations.
Actual volumes could deviate up or down depending on circumstances, said the person, who asked not to be identified,
The country's purchase plans come at a volatile time for the gas market. Competition for the fuel is intense and prices remain high as Europe also looks to replenish its dwindling reserves soon.
“We are waiting for a final approval of the balance, which will define the projected volume of consumption, extraction and imports of gas,” said Roman Chumak, acting CEO of Naftogaz of Ukraine.
Ukraine, traditionally a large importer of natural gas, has cut purchases of foreign fuel since 2022 as Russia's full-scale invasion has reduced domestic consumption.
Photo: Bloomberg
Damage to gas infrastructure has reduced the country's production capacity, and the cold winter has increased heating demand, pushing gas reserves to alarmingly low levels and forcing Naftogaz to buy natural gas from the European Union.
In February alone, 560 million cubic meters of gas were imported, according to the Ukrainian gas transportation system operator. According to estimates by Kyiv-based investment company Dragon Capital, this compares to about 700 million cubic meters purchased for the entire 2023 heating season,
The escalation of the standoff between President Volodymyr Zelenskyy and US President Donald Trump could make Kyiv even more vulnerable to Russian attacks, further exacerbating Ukraine's fuel supply concerns, Bloomberg notes.
While the EU is considering providing financial assistance to Slovakia and Hungary to store non-Russian natural gas in Ukraine's storage facilities next winter, Kyiv is also counting on this arrangement to protect its own supplies from further Russian attacks.
The price of gas in Europe is currently around $475 per thousand cubic meters. Thus, 3.5 billion cubic meters will cost Ukraine about $1.7 billion.
