You're reading: Gazprom declines to book additional capacities via Ukraine, Poland

MOSCOW – Gazprom has declined to book additional transit capacity via Ukraine and Poland for Q1 2022, according to the results of booking auctions on GSA Platform and Regional Booking Platform.

Gazprom has been refraining from long-term bookings this year, preferring mostly monthly contracts.

“Liberalization of the European gas market has resulted in the rejection of long-term transit agreements. Transparent auction bookings have replaced the long-term agreements in order to eliminate excess booking costs from the gas price. Consequently, those shipping gas are free to book only their required capacity amount, and for the time when the capacity would be necessary,” the report says.

UKRAINE

Gas Transmission System Operator of Ukraine distributed the proposed capacity along two routes, with 9.8 million cubic meters per day offered at the Sudzha gas-measuring station, and an additional 5.2 million cubic meters per day offered at the Sokhranovka gas-measuring station, though they were unclaimed.

Gazprom has a long-term booking of Ukrainian capacities totaling 40 billion cubic meters, which is 109 million cubic meters per day.

POLAND

Gazprom also did not book any capacity via the Polish section of the Yamal-Europe gas pipeline for the first quarter of 2022. The 2,000-km Yamal-Europe gas pipeline has the capacity to pump up to 33 billion cubic meters per year. The EuRoPol Gaz joint venture owns Poland’s 683-km section of the pipeline, and the national gas transmission operator Gaz-System operates the pipeline. Gazprom’s long-term contract for transit via Poland ended a year ago, with capacity since then being allocated based on auction bookings. For the gas year from October 2020 to September 2021, Gazprom booked capacity at an annual auction. The company then booked part of the pipeline’s capacities at monthly auctions.