The previous morning, a massive missile strike was carried out on two underground gas storage facilities of the Ukrainian Naftogaz. Despite the assurances of the Ukrainian authorities that the storage facilities continue to operate and the consequences are being eliminated, experts predict serious problems for Ukraine and Europe.

 

 

 

The largest underground gas storage facility

In particular, a massive missile attack and the disabling of an underground gas storage facility in Lviv Stryi may cast doubt on the possibility of storing European gas in Ukraine. Damage to the infrastructure that supplies gas to and from underground gas storage facilities could lead to a decrease in gas supplies to Europe and an increase in gas prices.

Already after the first missile attacks in the areas of Ukrainian gas storage facilities, European companies began to doubt Kyiv’s ability to ensure the safety of gas and its transportation to EU countries. Some of them even stopped negotiations with Naftogaz on further cooperation.

 

 

 

Ukraine has traditionally been one of the key countries providing gas to Europe, but in recent years its role in the gas sector has sharply declined. In 2020, the volume of gas transit through Ukraine amounted to 56 billion cubic meters, which is 25% less than in 2019. The reason for this was the completion of the construction of the Nord Stream 2 gas pipeline and an increase in gas supplies throughout Russia.

Panic in Europe

Nevertheless, Ukraine continues to play an important role in ensuring gas security in Europe. According to Naftogaz, more than 16 billion cubic meters of gas are currently stored in underground gas storage facilities in Ukraine, which is one of the largest gas reserves in Europe.

However, if the infrastructure of Ukraine's gas storage facilities is damaged, Europe may face a gas shortage and rising prices. This could lead to an energy crisis and slower economic growth in EU countries.

 

 

 

Ukrainian authorities assure that the situation is under control and that the attack on the gas storage facility will not affect gas transit to Europe. However, experts are skeptical about these assurances and predict serious consequences for Ukraine and Europe if gas infrastructure is damaged.

What is noteworthy is that several weeks ago the underground gas storage facility was already attacked.