Almost 4.5 months of the war: the energy front of Ukraine
The war has been raging in Ukraine for almost 4.5 months. The country continues to defend itself and business continues to work so that companies and people are provided with the necessary services and also to eliminate damages. Read more about the situation in June for the gas and energy sector:
Oil and gas sector
The situation in the area of activity of JSC “Donetskoblgaz” remains steadily difficult, and active hostilities continue making almost any repair of the gas infrastructure in the region impossible. The main gas pipeline remains damaged, currently, the GTS Operator cannot repair it. Due to this, most customers remain without gas. At the same time, the company continues to provide gas supply for two communities in the service area. We are talking about nearly 1900 households.
From June 1 to July 31, 2022, heat producers will receive gas from Naftogaz Trading LLC at a price of UAH 7.42 (including VAT) per cubic meter. These terms apply to the volume of gas needed to provide hot water. In June, consumers of Gas Supply Company Naftogaz Trading LLC reduced their use of natural gas by 12.1%. At the end of the month, Naftogaz Trading purchased 46 million cubic meters of gas at prices ranging from UAH 28,797.43 to UAH 28,804.09 per 1,000 cubic meters m with VAT. The company continues to operate as usual.
From June 1, the Gas Supply Company Naftogaz Trading LLC started to provide gas at a price of UAH 7.96 for another 8.8 million Ukrainians. These customers had to receive gas from a “last resort” supplier because their suppliers were unable to perform their function. The company continues to do its best to help new customers navigate the transition to a new provider. Despite the extraordinary load, all digital services of the company continue to work properly. In June, the contact center processes almost 320,000 calls. This is 3.5 times more than in May.
JSC “Naftogaz of Ukraine” helped to solve the problem of eliminating the shortage of petroleum products in Ukraine. The company is increasing its import. In May 2022, two thousand tons of diesel were imported, in June –5.6 thousand tons. Moreover, 15 600 tons of fuel were contracted for July, 4 000 tons of which are gasoline. The key import country is the Republic of Poland. NAC signed an agreement with Canadian energy developer Symbio Infrastructure (Symbio) to purchase liquefied natural gas (LNG) and green liquid hydrogen (LH2) from Quebec, Canada. Naftogaz also entered into a credit agreement with the EBRD to open a revolving credit line of up to EUR 300 million for the purchase of imported natural gas to sustain the heating season.
The Novoyavorivsk and Novorozdil CHPs (Lviv region) operate as usual. Workers continue to repair and prepare thermal power plants and heating networks for the autumn-winter period. The branch “Novorozdilski elektromerezhi” and the branch “Novoyavorivski elektromerezhi” work stably. Electricity is supplied to all consumers of Novyi Rozdil, Novoyavorivsk, and nearby settlements.
JSC “Ukrtransgaz” is actively preparing for the next winter — gas pumping units with updated gas turbine drives have started operating at one of the eastern Ukrainian underground gas storage (UGS) facilities. And at the Bogorodchansky UGS, the repair of the automatic control system of gas pumping units has been completed. At the same time, the UGS facilities of Ukrtransgaz remain under increased security and continue to work as usual.
Specialists of JSC “Ukrgazvydobuvannya” gave a second life to an almost 50-year-old well in the Poltava Region. After drilling in the 1970s, it produced gas, but over time the open deposit became depleted. A 3D model of the field was built, which made it possible to identify new promising layers where oil and gas deposits are predicted. One of these formations gave a significant influx of oil. Currently, the well is operating with an average daily output of about 100 tons of oil. The company continues to produce gas steadily at all its facilities except those near the contact line.
JSC “Ukrtransnafta” and JSC “Ukrspetstransgaz” continue to work as usual under martial law.
OJSC Kirovogradgaz operates as usual.
Natural gas market
Regional Gas Company. Since the end of February, Ukrainian gas companies returned gas to 253 settlements, which is 412,000 households across Ukraine. The work of 527 gas distribution points and 1,258 cabinet gas regulation points have been restored.
The GDN operators simplified the procedure for connecting biomethane plants to gas distribution networks and set a symbolic fee of 1 UAH for this. It can become another source of gas along with gas production and import. For a flat fee, biomethane producers will get services for the preparation of technical conditions, project approval, and insertion into the gas pipeline. For their part, they must finance the construction of external and internal gas networks and equipment.
After three months of the war, the losses associated with damaged critical infrastructure resulting from russian hostilities reached UAH 9.9 billion. During this period, the gas supply was restored for 390,000 Ukrainian families.
Since the beginning of the russian invasion, there have been cases of targeted destruction of critical infrastructure objects by russians: 5 thousand km of gas distribution networks were destroyed, 311 units of high-tech modern vehicles were crushed and 6 thousand m2 of buildings were taken down. To identify damage to gas pipelines, gas workers use modern leak detectors from Esders GmbH, Variotec, as well as mobile laboratories with French equipment Gazomat.
JSC “Kharkivgaz” has fully restored the gas supply in Dergachy. Gas workers started gas supply to almost 8,000 households in Dergachy, Malaya Danylivka, Karavan, Luzhok, and Chaykivka villages. In addition, gas pipelines were repaired and gas supply was restored for 70 families in Zolochiv, which is under daily shelling by firefighters. Restoration work is ongoing in Chuguyev.
Specialists of JSC “Kharkivmiskgaz” eliminated the consequences of a rocket attack in the Slobid district. An enemy missile hit an industrial building. The explosion took place inside the enterprise. This saved the surrounding houses but melted the metal structures, including the gas pipeline. Kharkiv gas workers carried out major repairs to the damaged area, putting 50 meters of polyethylene gas pipeline. On the same day, gas supply was restored to 12 private sector houses.
Kharkiv gas workers continue to “breathe life” into Northern Saltivka, which has turned into a “dead zone”. From the first day of the war until today, this area has suffered from russian attacks. However, gas workers are doing everything they can to bring life back here: they inspect underground and aboveground gas pipelines, replace damaged areas, and seal holes from explosions. Specialists of JSC “Kharkivmiskgaz” carried out the re-installation of a transit gas pipe in one of the high-rise buildings damaged by shelling. Thanks to this, gas workers will be able to restore gas supply to ten high-rise buildings in the future.
Specialists of JSC “Kharkivgaz” carried out repairs to gas distribution networks in the Chuguyiv district, which were shelled by the enemy. The restoration work preserved gas distribution for 3,000 families. Repair and restoration work on gas networks in the liberated settlements of the Kharkiv district is ongoing.
JSC “Kharkivgaz” returned gas distribution to 2.8 thousand homes! After the shelling of the Dergachy community, gas workers restored gas supply to 2,800 families in the city of Dergachy. Specialists of JSC “Kharkivgaz” will continue until the full restoration of gas distribution.
Work on the restoration of gas networks is also ongoing in the sixth de-occupied Stepanka village, the Vilkhiv community. Currently, gas workers are repairing and replacing damaged sections of distribution and residential gas pipelines.
JSC “Kharkivmiskgaz” restored gas supply to 5,000 consumers of the “Saltivka 1” microdistrict. Explosions still resound in Northern Saltivka, and many buildings are no longer subject to reconstruction. During two weeks of work, specialists of JSC “Kharkivmiskgaz” examined underground and aboveground gas pipelines, as well as the domestic gas system. In 30 houses, damage caused by shelling and explosions was welded, tens of meters of damaged sections of gas pipelines and shut-off devices were replaced. And in some high-rise buildings, the gas network was re-installed.
JSC “Kharkivgaz” resumed gas distribution in the de-occupied Rohan. In the suburbs of Kharkiv, namely Rohan village, gas workers repaired 36 damages to distribution and house communications. The gas is returned at the request of the residents – the owners of the house, who after evacuation gradually return to the village.
JSC “Kharkivgaz” has restored gas supply to 5,000 families of Dergachy and its surroundings. Specialists of JSC “Kharkivgaz” restored the medium-pressure gas pipeline damaged by shelling. Gas start-up works were carried out in Dergachy, Malia Danylivka, and the villages of Karavan, Luzhok, and Chaykivka.
Seven thousand families of the “Horizon” microdistrict in Kharkiv are again with gas! This district is located on the outskirts of Kharkiv and was one of the first to meet the enemy’s blows. Every day it turned into a second “Northern Saltivka”. The gas workers did not leave the area during the hostilities, but they were able to start the complex repairs and specialists of the State Emergency Service demined restoration work only after the area. Specialists of JSC “Kharkivmiskgaz” inspected underground and aboveground gas pipelines and carried out work on welding holes from projectile fragments. In some places, the gas system was re-installed to restore the gas supply to the residential building. Gas workers have also restored a stable gas supply to many residents of the Shevchenkiv district after the recent enemy strikes, which also brought destruction and casualties.
JSC “Kharkivgaz” continues to restore gas distribution in de-occupied settlements! This time – Vilkhivka of the Kharkiv district! Here, gas workers carried out a complete re-installation of networks in almost every house in order to return gas to 80 houses. Gas distribution has also been restored in Velyka Babka of the Chuguyiv district. There, gas distribution was restored to 73 houses.
Since the start of the war, Chernihivgaz JSC has resumed gas distribution to 20 settlements. Thus, 37 851 households in the region received gas again and got back to their lives. Chernihiv gas workers restored the operation of 20 gas distribution points and 40 cabinet gas distribution points.
Specialists of JSC “Chernihivgaz” completely replaced the reduction line of the gas regulating point in Nizhyn. Modern and reliable European-made equipment was installed to replace the old gas filter, valve and regulators.
Specialists of JSC “Chernihivgaz” continue to restore the networks damaged by russian forces in Bobrovytsa. After checking the gas networks in one of the most destroyed microdistricts in Chernihiv, gas workers completed the first round of repairs and resumed gas distribution. Three valves with a diameter of 100 mm were replaced. That provides gas delivery to 600 customers. Now specialists are working on replacing the equipment in order to start the networks in normal mode prior to the heating season.
JSC Kyivoblgaz started replacing 2,000 meters of a gas pipeline near Bila Tserkva. Gas workers in the Kyiv region are replacing a section of a high-pressure gas pipeline. The steel gas pipeline was located at a depth of nine meters and was in an emergency state. Specialists of JSC “Kyivoblgaz”, using the latest materials, are gradually replacing the worn gas pipeline, which distributes gas to 25,000 consumers.
The RGCProduction facilities in Dnipro planned to ship 63 cabinet gas control points for the de-occupied territories in June-July
Vinnytsia RGCProduction plant is working at full capacity!
Besides, three years ago – in 2019, the first automated plant for the production of gas equipment RGCProduction started operating in Lviv. It has become a kind of testing ground for the business to scale across Ukraine. Already in January 2021, the second automated plant was opened in Dnipro, and in December 2021 – the third in Vinnytsia. During this time, RGCProduction plants manufactured more than 3000 closed-circuit gas regulating stations (CCGRS), 1000 gas metering units (GMU), 30 000 membrane CCGRS / GMU, and 650 gas filters, 60 000 104.ua Smart modems. In August 2021, the gas regulating points of RGC Production were successfully tested with a gas-hydrogen mixture. All equipment is used to restore and modernize networks by gas distribution companies operating under the RGC brand.
In June, DTEK Grids energy workers restored electricity to 783 000 families in 660 settlements that experienced blackouts due to shelling in the Donetsk, Kyiv, and Dnipro regions. Most of all – in the Donetsk region, where hostilities are in an active stage and power grids are damaged every day due to shelling.
Most of the works are carried out by energy companies in the Donetsk region. Every day, the infrastructure of power grids is attacked and needs to be restored. Over the past month, DTEK electricians restored electricity to more than 765,000 residents of the region in 605 settlements. In some settlements, energy workers carry out repairs every day, due to massive artillery and air strikes. Particularly, on June 11,the lines and equipment of NEC “Ukrenergo” were disconnected due to hostilities which led to the blackout in the north Donetsk region. Specialists of DTEK Donetsk electric grids together with colleagues of NEC “Ukrenergo” in a matter of hours restored more than 300 000 customers with backup power supply from the north of the region while the main lines were under repair.
In June, enemy shelling continued in the Kryvorizka district of the Dnipropetrovsk region. Thus, energy workers had to restore the grids damaged by enemy missiles in the Kryvorizka district for almost 9 000 families.
Networks of the Kyiv region were once again damaged due to the fall of a russian missile. On June 1, due to damage to power lines as a result of enemy shelling, there was a power outage in 24 settlements in the Obukhiv district of the Kyiv region. Within two hours, electricians restored electricity to more than 8,000 families.
It should be noted that in May, the restoration of electricity supply to the residents of the districts of the Kyiv region affected by the occupation was completely finished. According to preliminary calculations, the restoration of grids in the Kyiv region to the quality and reliability of the pre-war electricity supply will require investments of nearly 1 billion UAH. Over 300 million hryvnias have already been invested by the company in restoring electricity to the residents of the Kyiv region in the shortest possible time. The second stage of the grid restoration is ahead. There will be a lot of work on the restoration of backup power sources. That will make it possible to provide reliable electricity supply to cities and villages like before the start of hostilities. It needs investments in the approximate amount of another 600-700 million UAH for 2022-2023. Therefore, in order to fully restore the grid infrastructure and develop it according to the plan and the needs of the residents of the region, the company needs the help from the state and international partners (according to the company, in the amount of UAH 1 billion).