Thermal power producers have reduced their debt to NJSC Naftogaz Ukrainy by UAH 22.03 billion through mutual settlements in accordance with the law on measures aimed at settling the debt of heat supply and heat generating organizations and enterprises of centralized water supply and drainage.
This was reported in a company’s press release on Thursday.
“It was possible to carry out mutual settlements in an extremely short time thanks to effective cooperation between Naftogaz, the Ministry of Communities and Territories Development of Ukraine, the Ministry of Finance of Ukraine, the State Treasury Service, thermal producers and relevant state administrations,” the document says.
According to the company, “debt settlement and timely payments for consumed natural gas are critically important to ensure a stable passage of the heating season.”
NJSC Naftogaz Ukrainy has funds for the purchase and subsequent injection of natural gas into underground gas storage facilities (UGS), Ukrainian Energy Minister Herman Haluschenko has said.
“Naftogaz has been provided with the appropriate financial resources to continue accumulating gas further,” he said during a government meeting.
Earlier, the Ministry of Energy said that Ukraine plans to start the heating season 2021/2022 with 19.2 billion cubic meters in UGS.
According to the Interfax-Ukraine agency, Naftogaz will receive funds from Gas Transmission System Operator of Ukraine under the compensation agreement with Ukrtransgaz, recommended by the Cabinet of Ministers of Ukraine for signing in accordance with resolution No. 1187-r dated September 29, 2021.
NJSC Naftogaz Ukrainy plans to end 2021 with a net profit, CEO Yuriy Vitrenko has said.
“We are doing everything to show that, in the results of this year, Naftogaz is no longer a loss-making company and is financially stable,” he told Interfax-Ukraine on the sidelines of the YES Brainstorming 2021 forum in Kyiv on Friday.
Vitrenko recalled that the stability of Naftogaz largely depends on the solvency and financial discipline of its counterparties to whom it sells natural gas: thermal energy enterprises, industrial and household consumers.
In addition, the financial activities of Naftogaz are also influenced by the results of Gas Transmission System Operator of Ukraine (GTSOU), on which the dynamic payments of Mahistralni Gazoprovody Ukrainy (MGU) for the infrastructure transferred at the end of 2019 depend.
“The situation when a critical element of the infrastructure – GTSOU – incurs losses that are not replenished, for example, due to unauthorized selections or nonpayment for balancing services, is not normal,” Vitrenko said.
“Naftogaz has enormous problems associated with the fact that the entire industrial chain was financially unstable. Our task is precisely to make sure that, on the one hand, the entire market can develop financially sustainably, and on the other hand, Naftogaz is a financially stable company. which can increase production and really ensure, and not at the level of declarations, the country’s energy security,” he said.
Independent members of the supervisory board of NJSC Naftogaz Ukrainy resigned on Tuesday, a government source has told Interfax-Ukraine.
As reported, Naftogaz CEO Yuriy Vitrenko and independent members of the board were not able to to develop a constructive dialog. Prime Minister of Ukraine Denys Shmyhal on Monday evening met with independent members of the Naftogaz supervisory board, and on Tuesday morning, the members of the supervisory board talked with the company’s management board.
On September 7, the prime minister announced in his Telegram channel that the competition for the selection of four members of the supervisory board of Naftogaz Ukrainy will be announced within a week.
According to him, the competition should end in November this year so that the new supervisory board has enough time to determine the requirements for a candidate for the post of chairman of the Naftogaz board and hold a competition to select him no later than May 1 of next year.
The Cabinet of Ministers of Ukraine, by order No. 494-r dated May 19, 2021, elected three independent members of the Supervisory Board for a new term of up to one year: Clare Spottiswoode (Great Britain), Bruno Lescoeur (France) and Ludo Van der Heyden (Belgium), as well as two representatives of the state: Nataliya Boyko and Yulia Kovaliv.
In addition, the powers of a member of the Supervisory Board representing the state, Robert Bensch, were prematurely terminated, and Yulia Svyrydenko, Deputy Head of the Office of the President of Ukraine, replaced him.
Over 15 years, NJSC Naftogaz Ukrainy has invested about $580 million in the production of concessional oil and gas fields of hydrocarbons in Egypt, said First Deputy Chairman of the Board of the company Serhiy Pereloma.
“We plan to develop this area in the future and, accordingly, to increase the volume of hydrocarbon production,” he wrote on his Facebook page following a meeting with Ambassador of the Republic Ayman Elgammal.
According to him, the joint company of the NJSC and the Egyptian General Petroleum Corporation (EGPC) – Petrosannan Company – were able to significantly increase the production of hydrocarbons in the Alam El Shawish East Western Desert this year. In particular, work has begun to increase hydrocarbon recovery by flooding an oil reservoir of one of the main fields, an intensive well workover campaign has been carried out, and significant results have been achieved during hydraulic fracturing operations.
“We plan to expand this successful experience. We are looking for ways not only to increase oil and gas production, but also new opportunities for their further transportation,” Pereloma said.
He also said that the Petrosannan Company has provided the Egyptian Coptic Church in Asyut governorate with geological data that will help drill new wells to supply the farms with fresh water.
Naftogaz and event organiser dmg events announced the launch of a major gas sector event in Ukraine. The Ukraine Gas Investment Congress, taking place from 20-22 October 2021 under the patronage of the Ministry of Energy of Ukraine and with the support of the Ministry of Environmental Protection and Natural Resources of Ukraine, will bring together industry leaders from around the world to discuss energy transition, technology, and industry transformation, along with key trade flows and delivery strategies.
The event is ideally timed to address Ukraine’s efforts to strengthen links with the European Union and achieve energy independence by 2030. As the importance of European energy security increases, the event will provide a platform for government ministers, energy industry leaders, investors, and technology innovators to examine opportunities to modernise Ukraine’s resources.
These are quickly becoming an attractive investment proposition, with attendees able to consider a well-developed midstream infrastructure that facilitates the monetization of new developments at scale, asset backed trading, and extensive Europe export potential, with the largest underground storage capacity in Europe and transit capacity of 90bcm.
The Energy Strategy of Ukraine 2035 aims to create a highly competitive energy market which encourages foreign direct investment and underpins rapid infrastructure development and integration with the EU’s systems. The Gas Investment Congress provides a forum for value-add partners to contribute capital and technological expertise to secure growth opportunities and financial returns.
Naftogaz СЕО Yuriy Vitrenko said: “Ukraine, and with it Naftogaz, have a key role to play in providing energy security for Europe. With the second largest gas reserves on the continent, Ukraine has the single largest growth opportunity in natural gas production in the EU. As the Gas Investment Congress shows, the investment opportunities in the gas sector are enormous.”
Christopher Hudson, President of Global Energy, dmg events, commented, “We very much look forward to joining forces with Naftogaz to host this event in Ukraine. By bringing together energy industry leaders, policy makers and investors, the Ukrainian Gas Investment Congress will present Ukraine’s natural gas opportunities and attractive investment climate to the world.”
Anyone wishing to attend can register their interest at:
https://www.ukrainegasinvestmentcongress.com/register-your-interest-to-attend/
ENDS
About Naftogaz:
State-owned Naftogaz is the largest national oil and gas company of Ukraine, owning 38,000 km of gas pipelines and 30 billion cubic metres of storage capacity. Naftogaz’s strategy of hydrocarbon resource base development aims to double Ukraine’s gas reserves in the next 10 years.
About dmg :: events:
dmg is one of the leading global event organisers, working across several key industries. Its energy portfolio includes some of the biggest events in the sector, such as Gastech, ADIPEC, and the Global Energy Show.
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