From the Ukraine to India, the energy market is at full throttle

From the Ukraine to India, the energy market is at full throttle

Marcello Vallese
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Europe's greatest storage facilities are finally being exploited to the full while in Asia even the smaller fields are being tapped for production

The Ukrainian energy control authority has recently issued a new regulation that oversees the management of its natural gas storage facilities. This news is bound to have a longterm effect on the game of three played out each year between Russia, Ukraine and the European Union and which has the management of the huge gas flows that transit across Ukrainian territory as its object of contention. The reason is the more than 30 billion cubic meters in storage capacity that make Ukraine the European leader, but that up to now, in recent years, have only been exploited to half their potential capacity by the European operators. The new regulation, which includes facilitations for operators - like being able to trade without paying injection and withdrawal fees, and the abolition of value added tax on storage, aims to increase the country’s energy security and ultimately, encourage a general reduction in prices. India is another country highly active on the energy front, and that has just assigned 44 oil and gas fields, including 16 offshore, to the respective winners of its calls for tender. This is at the end of a process to unbridle a range of energy resources that have remained untapped due to earlier technical, logistic and fiscal difficulties, begun by the Asian giant a little less than a year ago. The New Delhi government received 134 offers from 47 operators, with local enterprises taking the lion's share, gaining full 43 concessions. According to government estimates, the fields contain reserves of around 40 million tons of oil and 22 billion cubic meters of gas, exploitable over 15 years.