Ukraine reduces gas storage rates to encourage buildup before winter
Ukraine's state energy tariff regulator on Tuesday cut the fee for storing gas in the country's underground storage facilities by 11% in a move aimed at encouraging gas accumulation ahead of the next heating season.
Ukraine has Europe's largest underground gas storage capacity, with facilities able to hold more than 30 Bm3 of gas.
Kyiv has previously urged Western companies to inject and store their gas in Ukrainian facilities, taking advantage of low storage tariffs, and then use the gas in winter to supply European consumers.
Foreign companies stored up to 3 Bm3 of gas in Ukraine in 2023. However, after a significant increase in Russian attacks specifically targeting Ukraine's gas sector, storage levels fell to virtually zero.
The regulator said the decision to lower the tariff was made to "create favorable conditions" for building up gas reserves, and to increase the accessibility of gas storage services.
It said the new tariff could be reduced further if storage services are booked for at least one year, though it will be higher if the service is booked for a month or for a single day.
Ukraine usually begins injecting gas into storage in the spring, taking advantage of both lower gas consumption and lower prices.
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