Ukrainian air energy storage water tank

Could Ukraine become an energy bank?

Meanwhile, the CEO of Naftogaz (the parent company of Ukrtransgaz) recently offered 10 bcm of storage capacity to the EU and suggested that Ukraine could become an “energy bank” for Europe. De-risking the use of Ukrainian storage could improve energy security both in the EU and within Ukraine itself.

How much gas does Ukraine use a year?

Ukraine’s total annual gas consumption peaked at more than 120 bcm in 1990 and exceeded 50 bcm as recently as 2012, but due to a series of energy efficiency measures and ongoing conflict with Russia since 2014, domestic gas demand dropped to 26 bcm by 2021.

Can European customers use Ukrainian storage sites during the 2020 gas market oversupply?

Thanks to these reforms, European customers were able to use Ukrainian storage sites during the 2020 gas market oversupply, when EU storage sites filled up ahead of the winter. At the peak of the 2020 gas glut, about 10 bcm of gas was stored in Ukraine by foreign traders.

Could Ukraine solve a short-term gas glut?

A short-term glut can become a shortfall in the winter if Europe slows the pace of storage injections or runs out of storage space. Ukraine, with the world’s third-largest gas storage capacity, could help solve this unexpected challenge.

Will a gas surplus help Ukraine continue supplying gas?

Ensuring that the current gas surplus in Europe carries into the winter could help Ukraine’s western neighbors continue supplying gas to Ukraine, which has received virtually all of its gas imports via EU countries (in the form of physical or virtual reverse flows) since 2015.

Could Ukraine solve Europe's gas crisis?

Ukraine, with the world’s third-largest gas storage capacity, could help solve this unexpected challenge. Thanks to a combination of warmer-than-normal weather, price-driven demand destruction, and well-timed policy action, the gas balance in Europe looks surprisingly favorable.