Ukrainian energy storage warehouse

Does Ukraine have a gas storage capacity?

With its domestic needs met, Ukraine has offered 10bn cubic metres of gas storage capacity to partners – roughly a third of its total volume. Storing gas in Ukraine offers European companies a hedge against future interferences to supply.

How much storage capacity did Ukraine offer last year?

Ukraine offered about 10 bcm of additional storage capacity last year, and European entities stored more than 2 bcm ahead of the winter months, as the country offered incentives such as cheap storage tariffs.

How much money can Ukraine make from storing gas?

A senior EU official said the increased attacks have made such considerations difficult. Ukraine could make about €200mn from European traders storing gas, but the counter-guarantee would need to reach €1bn, the official said. “If you want to support Ukraine, just give them €1bn,” the official said.

How important is Ukraine's energy sector?

Ukraine’s air defences provided some protection, but the scale of the attack and the resulting disruption highlighted once again the vital strategic importance of Ukraine’s energy sector, as well as the ever-present risks to the country’s energy supply.

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.

Why does Ukraine have a 'customs warehouse'?

Ukraine has a so-called “customs warehouse” system to attract foreign customers, with gas stored there exempt from custom duties for three years, allowing it to easily be reimported to the EU. The country’s own gas demand has fallen sharply as Russia’s invasion has disrupted industries and the wider economy.