Corrected: Russian gas flows to Ukraine may resume on Monday

(The expected time that flows will commence has been corrected.)

Russian producer Gazprom said on Friday that deliveries of natural gas to Ukrainian incumbent Naftogaz could commence on Monday, 12 October at 10:00 Moscow time. But for flows to commence, pre-payment for the gas must happen first.

Ukraine has requested 2 billion cubic metres (bcm) of gas for October. Assuming this is supplied during 12-31 October, this would equate to 100 million cubic metres/day being delivered.

Ukraine needs to quickly up the fullness of its storage facilities before domestic consumption increase as winter temperatures drop. Fuller tanks in Ukraine improves the security of supply not only to the domestic market, but also to EU hubs which receive their Russian gas via the country.

Ukrainian grid and storage operator Ukrtransgaz data shows that tanks were most recently holding 15.8bcm, nearly 6% less than at the same time last year.

Ukrainian prime minister Arseny Yatsenyuk said last month at least 19bcm must be in stock so that the country could make it through the winter.

The Russian and Ukrainian energy ministers agreed to pricing and supply terms for a winter supply package between Gazprom and Naftogaz last month (see ESGM 28 September 2015). The deal was brokered by the European Commission which is also leading the financing of $500m (€440m) to cover costs. tom.marzec-manser@icis.com