Ukraine gas TSO calls force majeure amid concerns over Russian gas transit interference

Aura Sabadus

10-May-2022

LONDON (ICIS)–The Ukrainian gas transmission system operator GSTOU has called force majeure and suspended Russian gas flows via the Sokhranivka border point amid rising concerns over interference with transmission operations and unauthorised withdrawals of transit gas, the company said in a statement on 10 May.

The news has driven European benchmark the ICIS TTF higher.

Flows via the border point in the eastern Luhansk region, which averaged 32.6mcm/day in recent days, will be stopped from 7am Kyiv time on 11 May for an indeterminate period of time.

GTSOU said it was ready to reroute the flows to the other entry point at Sudzha, some 600km to the north and added it could offer even more capacity than the contracted one to transit additional flows.

The historical technical capacity of the Sudzha border point is 327mcm/day but the capacity prescribed by the existing transit contract is 87mcm/day.

If flows currently entering Sokhranivka are diverted, the full contracted volumes of 109.6mcm/day could be shipped entirely via Sudzha.

The Sokhranivka border point and the adjacent Novopskov compressor station fell under Russian control some two months ago.

GTSOU has repeatedly raised concerns about the occupying forces tampering with the infrastructure but a source said there were signs this week that they had started to withdraw transit gas without authorisation, which prompted the operator to call immediate force majeure.

“The company [GTSOU] repeatedly informed Gazprom about threats of transit due to the actions of the Russian-controlled occupation forces and demanded an end to interference in the operation of the facilities, but these appeals were ignored,” GTSOU said in the statement.

READ MORE

ICIS Premium news service

The subscription platform provides access to our full range of breaking news and analysis

Contact us now to find out more

Speak with ICIS

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?