Business news from Ukraine

NAFTOGAZ WILL REDUCE PRICE OF NATURAL GAS FOR UKRAINIAN POPULATION BY 11.7%

NJSC Naftogaz Ukrainy will reduce the price of natural gas for the population by 11.7% (by UAH 648) compared to the June price, to UAH 4,905 for 1,000 cubic meters (excluding VAT, shipping costs and supplier margins), the press service of the company has said. Naftogaz focused on the fact that the final price for consumers will depend on the tariff for gas distribution.
As reported, according to government resolution No. 485 of June 5, 2019, from June Naftogaz is obliged to sell gas to the population at the minimum price of the four market values: the average price of imports according to the Ministry of Economic Development and Trade (UAH 5,161), the company’s price for industry (UAH 5,017), the average weighted price on the Ukrainian Energy Exchange (UAH 4,905), and public service obligations according to resolution No. 867 (the price is calculated in the amount of UAH 7,185).

, ,

FLOW ENERGY FROM GREECE INTERESTED IN UKRAINIAN ELECTRONIC OIL AND GAS AUCTIONS

The Greek energy company Flow Energy & Environmental Operations S.A. is interested in Ukrainian electronic oil and gas auctions and is ready to invest up to EUR 1.2 million in hydrocarbon deposits, Ukraine’s State Service of Geology and Subsoil has reported.
According to the service, the energy company got acquainted with the primary and secondary geological information on five fields, auctions for which are scheduled for June 18.
“Our company intends to take part in the next auction. Despite the fact that we are a small company, we are interested in five oil and gas deposits with a total cost of more than EUR 1 million. I hope that this is only the beginning and we will be active participants in the Ukrainian energy market,” the press service said citing the president of the Greek company, Tereza Fokianou.
The service noted the low level of participation of foreign companies in oil and gas auctions, but said they were working to attract foreign investors.

, , ,

POLISH COMPANY PLANS TO PARTICIPATE IN TENDER TO DEVELOP OIL AND GAS FIELD IN UKRAINE

The interdepartmental commission organizing and implementing the product sharing agreements (PSA) has received a bid from Poland’s Unimot seeking to participate in a tender to develop the Ivanivske field (Kharkiv region) under PSA, Executive Director of the Association of Gas Producers Roman Opimakh has said on his Facebook page.
“Today [on June 6], the 14th company was registered, which submitted an application for participation in the tender for entering into a PSA for the Ivanivske field. It became the third candidate for this lot, which gives the right to explore and produce fossil fuel in Kharkiv region. This is the Polish concern Unimot selling automotive fuels and such commodities as gas and electricity,” he wrote.
Opimakh said that the procedure of the tender allows the acceptance of applications for participation sent by mail subject to the availability of a mail stamp confirming the sending of the main meeting the deadline – May 28.
He also said that at present, the company has no experience in exploration and production, however, Opimakh said that joint development with some specialized company is not ruled out.
Unimot S.A is an energy company which activities include the import and sale of petroleum products, liquefied natural gas and electricity.
Previously, the company has repeatedly reported about entering the Ukrainian fuel market with the AVIA network of gas stations.

, , , ,

UKRAINE IN JAN-MAY RAISES GAS TRANSIT BY 8%

Ukraine in January-May 2019 increased transit of natural gas through its gas transportation system (GTS) by 7.9% compared to the same period in 2018, to 37.628 billion cubic meters, according to recent data from JSC Ukrtransgaz. According to calculations by the Interfax-Ukraine agency, in particular transit of gas through the country to Europe for the four months amounted to 36.271 billion cubic meters (8.3% more compared to January-May 2018), to Moldova some 1.357 billion cubic meters (2.4% less).
As of late May 2019, gas transit increased by 16.5% (1.185 billion cubic meters) compared to the same month of 2018, to 8.387 billion cubic meters. In particular gas transit through Ukraine to Europe amounted to 8.209 billion cubic meters (a rise of 16.8%), Moldova some 159.5 million cubic meters (a rise of 2.3%).

,

UKRAINE INCREASES GAS PRODUCTION BY 3.4%

Natural gas production in Ukraine grew 3.4% year-on-year in January-May 2019, to 8.797 billion cubic meters, the Energy and Coal Industry Ministry of Ukraine has told Interfax-Ukraine. According to calculations of Interfax-Ukraine, Ukrgazvydobuvannia produced 6.44 bcm of gas, up 2.46%, Ukrnafta produced 481.396 million cubic meters, up 11.2%, and other companies produced 1.876 bcm, up 5%.
In May-2019 gas production amounted to 1.782 bcm (a rise of 2.76% by May 2018), including production by Ukrgazvydobuvannia amounted to 1.3 bcm (a rise of 1.5%), Ukrnafta – 98.4 mcm (a rise of 11%), other companies – 383.1 mcm (a rise of 5.3%).

,

UKRAINE INCREASES GAS INVENTORIES BY 2 BCM IN MAY

Ukraine in May 2019 increased natural gas stocks in its underground storage facilities by 1.95 billion cubic meters (bcm), according to recent update from JSC Ukrtransgaz.
Thus, daily average pumping last month was 62.9 million cubic meters (mcm), which is more than in May 2018 (52.6 mcm), May 2017 (51.9 mcm), May 2016 (15.3 mcm) and May 2015 (57.3 mcm).
Retaining the pace of pumping in next four and a half months would allow Ukraine to start the heating season with 20 bcm of gas in stock.
Ukraine from April 4 through June 1, 2019 increased natural gas stocks in its underground storage facilities by 31% or 2.713 billion cubic meters (bcm), to 11.459 bcm.
According to the calculations of the Interfax-Ukraine agency, the figure is 19.1% more than stocks on June 1, 2018 and 13.6% more than on June 1, 2017.
On June 1, 2019, 70.32 million cubic meters (mcm) of gas was pumped into the underground storage facilities and 54.4 mcm of gas was imported with domestic production of 56.6 mcm.
Earlier Naftogaz CEO Andriy Kobolev said that national joint-stock company Naftogaz Ukrainy is mulling a possibility of pumping an additional volume of gas to the underground gas storage facilities of Ukraine if Russia’s Gazprom stops gas transit across the country after 2019. Ukraine plans to have around 20 bcm of gas in stocksat the beginning of the next heating season.
During the heating season started on November 7, 2018 and lasted until April 4, 2019 some 8.45 bcm of gas was pumped from the underground gas storage facilities. The stocks fell from 17.195 bcm to 8.745 bcm.
Ukrtransgaz, a wholly owned subsidiary of Naftogaz Ukrainy, operates Ukraine’s gas transmission system and 12 underground gas storage facilities with 31 bcm of capacity.

,