Application for gas transit through Ukraine falls to minimum since mid-February

The spring warming and the decrease in the cost of blue fuel on the spot market have led to a reduction in the volume of applications for Russian gas supplies, Report informs, citing the GTS Operator of Ukraine.

"The nomination for pumping Russian gas to the region on April 23 is 48.8 million cubic meters, the application for April 22 was 58.5 million cubic meters," the company said.

This is the minimum level for the latest two months (since February 19).

If imported gas is supplied according to the exchange index "one month ahead" (Gazprom has about half of its exports tied to it), then its price in April is about $1,400 per 1,000 cubic meters. The "day ahead" contract on the spot market is now $1,029 per 1,000 cubic meters. Therefore, buyers increase purchases on the spot, reducing the selection of record-breaking long-term contracts.

This, in particular, explains the growth of reverse deliveries from Germany to Poland via Yamal-Europe. This highway in the section between the two named countries has been continuously operating in reverse mode since April 7. On Saturday, the flow of gas from Germany to Poland is still 0.7 million cubic meters per hour, according to data from the gas transmission operator Gascade. The withdrawal of additional volumes from the main European hubs instead of direct imports from the east is another component of the current high gas prices in the EU.

Europe has opened the season for pumping gas into underground storage facilities. At the moment, the reserves are 30.4%.