More than 5 months of war: news from the energy front

03/ 08/ 2022

During more than 5 months of the war, the energy sector has been working tirelessly to provide Ukraine with the necessary services. Thus, in July, the companies of critical infrastructure continued the restoration of damage caused by hostilities, as well as the preparation for the heating season. For details, read below. Oil and gas sector Naftogaz of Ukraine paid UAH 3.9 billion in dividends to the state budget, which is 30% of the net profit for 2021. As a result of last years work, the company received a net profit of UAH 12 billion, 65% of which (UAH 8.5 billion) Naftogaz will direct by the Governments decision to import of natural gas for the next heating season. The CMU did not grant the companys officials permission to fulfill their obligations to Eurobond holders regarding the necessary payments of the principal amount and interest. That resulted in the Eurobonds default. At the same time, Naftogaz will immediately propose a new agreement to obtain the consent of Eurobond holders to postpone payments. In July, another 1.3 million consumers became clients of Naftogaz of Ukraine. The company continues to work 24/7 on customer service, the incoming line is currently processed by 290 operators. During July, almost 1.2 million calls were processed, and 85% of customers could solve their issue already on the first call. Consumers of Naftogaz Trading LLC increased their use of natural gas by 18.6% over the month. The Novoyavorivsk and Novorozdil thermal plants operate as usual. Preparation for the heating season continues according to plan. Ukrtransgaz PSG network facilities remain under increased security and continue to work as usual. Specialists of JSC Donetskoblgaz continue to work under continuous shelling. Last week, occupiers attacked their warehouse in the city of Kostyantynivka, Donetsk region. Despite this, Donetskoblgaz managed to completely repair the cars of the corporate fleet that were damaged by enemy fire in two weeks and return to work. The company is also preparing a project to provide technical consulting assistance to customers who switch to a new heating system using propane-butane. JSC Ukrgazvydobuvannya launched a new well in Poltava Oblast. It has a depth of more than 6 000 m and yields about 100,000 m3 of gas per day. The company continues to produce gas steadily at all of its facilities except those near the contact line. Employees of JSC Kirovogradgaz continue to take care of their customers in Kropyvnytskyi. As a result of the shelling on July 23, 2022, the gas infrastructure was not damaged. The company continues to operate under martial law. JSC Ukrtransnafta and JSC Ukrspetstransgaz will continue to work as usual under martial law. Electricity Power workers of DTEK Grids have been working continuously for 159 days and, together with all Emergency services, are doing everything their best to ensure that Ukrainians have light at home. In July, the power specialists returned light to 478 000 families that were left without electricity due to shelling in the Donetsk, Dnipropetrovsk, and Odesa regions. Repair works were carried out in 590 settlements. Grids were most often repaired in the Donetsk region. There, electricity was restored to more than 457 000 homes in 522 settlements. Due to the high intensity of shelling, the light has been disrupted on a daily basis. Damage to the power grid by enemy projectiles in the Dnipropetrovsk region is becoming more and more frequent. In July, power specialists restored the supply of electricity to the homes of 17 000 families in 61 settlements of the Kryvorizky and Nikopol districts. Besides, three times in July, enemy missiles destroyed the infrastructure of power grids and led to blackouts in Odesa. Specialists of DTEK Odesa Electric Grids restored electricity supply to more than 3 thousand families in 7 settlements of the region. The company continues its work to restore the pre-war quality and reliability of electricity supply in the de-occupied areas of the Kyiv region. For this, the help of the state and international partners in the amount of about UAH 1 billion is needed. More than UAH 300 million have already been invested in restoring the light. The second stage is ahead - the restoration of backup power sources, which will make it possible to ensure reliable electricity supply to cities and villages. It needs investments in the approximate amount of another 600-700 million UAH in the perspective of 2022-2023. Natural gas market Regional Gas Company. 468 449 consumers have their gas supply restored, 278 895 consumers remain without gas supply. In the first 7 months of 2022, RGCProduction manufactured 1 037 closed-circuit gas regulating stations for modernization, as well as restoration of gas supply in war-affected settlements of Ukraine. Kharkiv region. Despite the danger, the specialists of JSC Kharkivgaz managed to restore the distribution gas pipeline destroyed by the russian occupiers, which supplies gas to one of the settlements of the Barvinkiv community. During the 150 days of the war in Kharkiv, the emergency service teams of JSC Kharkivmiskgaz made more than 5 000 trips to the places of destruction to promptly eliminate gas leaks, to provide emergency assistance to gas pipelines that were damaged by shell bursts or shock waves. Under enemy fire, gas workers of JSC Kharkivmiskgaz restored gas supply to 3 000 families in the Velyka Danylivka microdistrict, which is in the line of enemy fire along with North Saltivka. Gas distribution was also restored for thousands of families in the Shevchenko microdistrict. Sumy region. Dozens of households suffered significant destruction due to enemy shelling in the Glukhiv region, and the underground distribution gas pipeline was damaged. In less than a day, Sumygaz experts eliminated the consequences of network attacks. Gas distribution was restored for 500 residential buildings in the war zone. Generally, since February 2022, gas distribution companies operating under the RGC brand have directed UAH 78 million to restore gas networks in de-occupied and other regions.

Oil and gas sector

Naftogaz of Ukraine paid UAH 3.9 billion in dividends to the state budget, which is 30% of the net profit for 2021. As a result of last year’s work, the company received a net profit of UAH 12 billion, 65% of which (UAH 8.5 billion) Naftogaz will direct by the Government’s decision to import of natural gas for the next heating season.

The CMU did not grant the company’s officials permission to fulfill their obligations to Eurobond holders regarding the necessary payments of the principal amount and interest. That resulted in the Eurobonds default. At the same time, Naftogaz will immediately propose a new agreement to obtain the consent of Eurobond holders to postpone payments.

In July, another 1.3 million consumers became clients of Naftogaz of Ukraine. The company continues to work 24/7 on customer service, the incoming line is currently processed by 290 operators. During July, almost 1.2 million calls were processed, and 85% of customers could solve their issue already on the first call.

Consumers of Naftogaz Trading LLC increased their use of natural gas by 18.6% over the month.

The Novoyavorivsk and Novorozdil thermal plants operate as usual. Preparation for the heating season continues according to plan.

Ukrtransgaz PSG network facilities remain under increased security and continue to work as usual.

Specialists of JSC “Donetskoblgaz” continue to work under continuous shelling. Last week, occupiers attacked their warehouse in the city of Kostyantynivka, Donetsk region. Despite this, Donetskoblgaz managed to completely repair the cars of the corporate fleet that were damaged by enemy fire in two weeks and return to work.

The company is also preparing a project to provide technical consulting assistance to customers who switch to a new heating system using propane-butane.

JSC “Ukrgazvydobuvannya” launched a new well in Poltava Oblast. It has a depth of more than 6 000 m and yields about 100,000 m3 of gas per day. The company continues to produce gas steadily at all of its facilities except those near the contact line.

Employees of JSC “Kirovogradgaz” continue to take care of their customers in Kropyvnytskyi. As a result of the shelling on July 23, 2022, the gas infrastructure was not damaged. The company continues to operate under martial law.

JSC “Ukrtransnafta” and JSC “Ukrspetstransgaz” will continue to work as usual under martial law.

Electricity

Power workers of DTEK Grids have been working continuously for 159 days and, together with all Emergency services, are doing everything their best to ensure that Ukrainians have light at home.

In July, the power specialists returned light to 478 000 families that were left without electricity due to shelling in the Donetsk, Dnipropetrovsk, and Odesa regions. Repair works were carried out in 590 settlements.

Grids were most often repaired in the Donetsk region. There, electricity was restored to more than 457 000 homes in 522 settlements. Due to the high intensity of shelling, the light has been disrupted on a daily basis.

Damage to the power grid by enemy projectiles in the Dnipropetrovsk region is becoming more and more frequent. In July, power specialists restored the supply of electricity to the homes of 17 000 families in 61 settlements of the Kryvorizky and Nikopol districts.

Besides, three times in July, enemy missiles destroyed the infrastructure of power grids and led to blackouts in Odesa. Specialists of DTEK Odesa Electric Grids restored electricity supply to more than 3 thousand families in 7 settlements of the region.

The company continues its work to restore the pre-war quality and reliability of electricity supply in the de-occupied areas of the Kyiv region. For this, the help of the state and international partners in the amount of about UAH 1 billion is needed. More than UAH 300 million have already been invested in restoring the light. The second stage is ahead – the restoration of backup power sources, which will make it possible to ensure reliable electricity supply to cities and villages. It needs investments in the approximate amount of another 600-700 million UAH in the perspective of 2022-2023.

Natural gas market

Regional Gas Company. 468 449 consumers have their gas supply restored, 278 895 consumers remain without gas supply.

In the first 7 months of 2022, RGCProduction manufactured 1 037 closed-circuit gas regulating stations for modernization, as well as restoration of gas supply in war-affected settlements of Ukraine.

Kharkiv region. Despite the danger, the specialists of JSC “Kharkivgaz” managed to restore the distribution gas pipeline destroyed by the russian occupiers, which supplies gas to one of the settlements of the Barvinkiv community.

During the 150 days of the war in Kharkiv, the emergency service teams of JSC “Kharkivmiskgaz” made more than 5 000 trips to the places of destruction to promptly eliminate gas leaks, to provide “emergency” assistance to gas pipelines that were damaged by shell bursts or shock waves.

Under enemy fire, gas workers of JSC “Kharkivmiskgaz” restored gas supply to 3 000 families in the Velyka Danylivka microdistrict, which is in the line of enemy fire along with North Saltivka. Gas distribution was also restored for thousands of families in the Shevchenko microdistrict.

Sumy region. Dozens of households suffered significant destruction due to enemy shelling in the Glukhiv region, and the underground distribution gas pipeline was damaged. In less than a day, Sumygaz experts eliminated the consequences of network attacks. Gas distribution was restored for 500 residential buildings in the war zone.

Generally, since February 2022, gas distribution companies operating under the RGC brand have directed UAH 78 million to restore gas networks in de-occupied and other regions.