Business news from Ukraine

DTEK OIL & GAS EXTRACTS 1.6 BCN OF GAS IN 2018

DTEK Oil & Gas extracted 1.649 billion cubic meters (bcm) of natural gas in 2018, which is almost the same as in 2017 (1.65 bcm), the company’s press service has reported.
The press service said that in general, the gas production target was met by 103%.
The company produced 51,500 tonnes of gas condensate, which is 4.6% less than in 2017 (54,000 tonnes).
At the end of the year, DTEK Oil & Gas drilled wells No. 25 and No. 61 at the Semyrenkivske field, finalized an investment project for the construction of a propane-refrigeration unit, which was launched at the Olefirivska gas pre-treatment unit in September 2018.
In addition, major overhauls were carried out to intensify production at the existing well stock, as well as a condensate stabilization gas utilization compressor at the Olefirivska gas pre-treatment unit and Semyrenkivske gas pre-treatment unit were equipped and launched, which make it possible to increase the environmental friendliness of the fossil fuel production process.
“In 2018, we confirmed our record high thanks to the increase in the efficiency of work with the existing fund and the introduction of modern technologies. We managed to produce an additional 100 million cubic meters of gas thanks to innovation,” DTEK Oil & Gas CEO Ihor Schurov said.

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DTEK NAFTOGAZ PLANS TO INCREASE GAS PRODUCTION IN 2019

DTEK Naftogaz LLC intends to increase natural gas production in 2019 by 10-12% (by 170-200 million cubic meters) compared to the expected production in 2018, to 1.8 billion cubic meters, manager on regulatory issues in the company Yulia Borzhemska has said during the XVI International Forum “Fuel and Energy Complex of Ukraine: Present and Future” in Kyiv.
According to the agency’s calculations, taking into account DTEK gas production in January-September 2018 in the amount of 1.242 billion cubic meters, the expected production in the current year will be 1.66 billion cubic meters.
“Next year, thanks to innovations, we will have a growth of 10-12%,” she said.
As reported, DTEK Naftogaz plans to achieve production of 2 billion cubic meters of natural gas until 2023.
DTEK Naftogaz is an operating company responsible for the oil and gas sector within DTEK energy holding. The assets portfolio of DTEK Naftogaz includes Naftogazvydobuvannia and Naftogazrozrobka, which carry out hydrocarbon exploration and production on three license areas in Poltava and Kharkiv regions.

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UKRAINIAN ENTERPRISES IMPORT GAS AT $323 PER 1,000 CUBIC METERS IN OCT

Ukrainian enterprises in October 2018 imported gas at an average price of $323.44 (UAH 9,059.13) per 1,000 cubic meters, according to the website of the Ministry of Economic Development and Trade.
Thus, the price of gas imports in October was 6.3% higher than in September, when it was $304.36 (UAH 8,490.33) per 1,000 cubic meters.
The price in October 2018 is the highest since February 2015 when gas was imported to Ukraine at $328.60 per 1,000 cubic meters.
As reported, the price of gas imports per 1,000 cubic meters was $272.93 (UAH 7,784) in January 2018, $276.96 (UAH 7,430) in February 2018, $274.57 (UAH 7,154) in March 2018, $309.91 (UAH 8,100) in April 2018, $260.01 (UAH 6,806) in May 2018, $266.35 (UAH 6,960.18) in June, $288.82 (UAH 7,594) in July, $286.65 (UAH 7,910) in August, and $304.36 (UAH 8,490.33) in September, the Ministry of Economic Development and Trade said.
Earlier, Chief Commercial Officer of Naftogaz Ukrainy Yuriy Vitrenko said the average customs value of imported gas published by the Ministry of Economic Development and Trade is not representative.

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UKRTRANSGAZ CREATES BRANCH TO MANAGE UNDERGROUND GAS STORAGE FACILITIES

JSC Ukrtransgaz has created a new branch – Operator of Ukrainian Gas Storage Facilities, which will be responsible for the provision of gas storage services and operation of underground gas storage facilities.
The company said in a press release that the branch would consolidate all assets, processes and employees required for the provision of gas storage services. It is planned that the branch will start operating at a full capacity from January 1, 2019. The branch will function as a structural unit of Ukrtransgaz, without establishing a separate legal entity.
Ukrtransgaz is conducting preparatory work on the legal and organizational design of the operation of the branch, the redistribution of production and business processes, an inventory of existing assets and the transfer to the new branch of more than 1,700 specialists who support the operation of Ukrainian underground gas storage facilities.
“The creation of the operator is a consistent step towards the qualitative completion of the unbundling process, as a result of which the operator of Ukraine’s GTS [gas transmission system] will be finally separated from Ukrtransgaz after the current transit contract with Gazprom terminates,” Ukrtransgaz President Andriy Khomenko said.
Ukrtransgaz, a wholly owned subsidiary of Naftogaz Ukrainy, operates Ukraine’s gas transmission system and 12 underground gas storage facilities with 31 billion cubic meters of capacity.

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ANGELA MERKEL FAVORS PRESERVING UKRAINE’S GAS TRANSIT ROLE

German Chancellor Angela Merkel said she was not as critical as Kyiv about the Nord Stream 2 gas pipeline and was in favor of Ukraine preserving its transit role after 2019. “We know that Ukraine is against this project. I am less critical about the project and I am in favor of Ukraine having guarantees, that Ukraine will preserve its transit role,” she said at a meeting with the Ukrainian parliament speaker, Andriy Parubiy, and the heads of parliamentary groups in Kyiv.
She noted that the negotiations on Nord Stream 2 are being conducted with both Russia and the European Commission. “The matter concerns creating a transit agreement. We want Ukraine to remain an important transit country,” Merkel emphasized. The chancellor noted that in addition to Nord Stream there is also TurkStream. “Thus, gas flows are expanding from Russia to the European Union, but this does not mean that we want to reject the transit role of Ukraine. I think that gas transit revenues are extremely important for the budget of Ukraine,” she said.
Merkel noted that Berlin “very seriously” considers the strategic opinion of Ukraine on the issue of Nord Stream 2. “We want to see Ukraine as a partner with respect to transit,” she said.
Prior to this, Verkhovna Rada Chairman Andriy Parubiy called on Merkel to study in more detail the arguments of Ukraine against the construction of the Nord Stream 2 gas pipeline.
“The construction of Nord Stream 2 could bring imbalance and threaten the security of not only Ukraine but the entire European space. And this is the position of the Ukrainian parliament. I would ask that the arguments of the Ukrainian side be studied more in detail,” Parubiy said during a meeting with the German chancellor in Kyiv.
The speaker called for supporting the position of the Ukrainian parliament on the Nord Stream 2 issue.

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UKRAINE INCREASES GAS STOCKS TO 16.9 BCM

Ukraine after the completion of the heating season increased its natural gas reserves in the underground gas storage facilities by 9.469 billion cubic meters (bcm), according to data from Ukrtransgaz. So, from April 8 to October 20, 2018 gas inventories rose by almost 2.3 times, from 7.435 bcm to 16.904 bcm.
According to the calculations of the Interfax-Ukraine agency, on October 1 through October 20 gas storage facilities were replenished by 669.29 million cubic meters (mcm, 33.46 mcm per day), in September by 1.595 bcm (53.17 mcm a day), in August by 1.793 bcm (57.85 mcm per day), in July by 1.655 bcm (53.38 mcm per day), in June by 1.623 bcm (54.09 mcm per day), in May by 1.632 bcm (52.65 mcm per day), April 9-30 by 500.84 mcm (22.77 mcm per day).
Ukraine came out from the 2017/2018 heating season with the minimum stocks in the last four seasons due to the frosty March-early April.
As reported, the Cabinet of Ministers of Ukraine expects that gas inventories by November 1, 2018 will amount to 17 bcm.

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