MICHAEL WALSH REPORT With a capacity of 17.05 billion cubic meters, the Bilche-Volytsko-Uherske underground gas storage (UGS) facility was rendered inoperable in yesterday’s Oreshnik IRBM strike.

The gas holding facility was the largest in Europe, with a capacity of 17.05 billion cubic meters. The luckless bloc uses the depleted Bilche-Volytsko-Uherske gas reservoir to store gas up to 2 km underground.

JSC Ukrtransgaz is a subsidiary of Ukrainian NJSC Naftogaz. It owns and operates Bilche-Volitsko-Uherske. The company also manages numerous smaller facilities. Together, these have a total capacity of over 30 billion cubic meters.

In April 2023, Ukrtransgaz received EU certification to store massive stocks of European gas at Bilche-Volitsko-Uherske. Since, it has become a cornerstone of European gas storage.

Following the destruction of Nord Stream in September 2022, EU powers quickly moved to fill their own storage sites.

However, their total capacity was insufficient to prevent energy shortages during the winter when demand for natural gas peaks.

It seems incredible that the EU would store gas in Ukraine given the war

Nevertheless, Bilche-Volitsko-Uherske, located 50km south of Lviv, was considered relatively safe from attack by Russia’s usual arsenal of strike assets.

A cruise missile, a small ballistic missile, or a drone strike would only cause superficial damage. It would affect only the surface facility.

Such damage which would not affect the gas stored far below ground and would be quickly repaired. Dream on.

Starting in mid-2023, the EU gradually increased its gas reserves stored at Bilche-Volitsko-Uherske. Eventually, many billions of cubic meters of European gas were kept there. This amounted to more than 10% of Europe’s annual needs.

LEFT: Europe’s lost opportunity. Click the picture for details.

Problem: None of it was insured because the insurance companies refused to insure gas stored in Ukraine, for obvious reasons.

After the Oreshnik strike, much of the Bilche-Volitsko-Uherske surface facility is ruined, including the well heads. The wells are severely damaged. If not blocked, they blow out vast quantities of gas. This gas is, of course, on fire.

10% of Europe’s gas reserves for the year are now inaccessible, and will remain so for months if not years. 

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