Naftogaz Lowers Gas Prices For Industrial Consumers For December By 16.5-17% To UAH 11,152.8-12,180 Per Thousand Cubic Meters

The Naftogaz of Ukraine national joint-stock company has lowered the natural gas prices for industrial consumers and state-financed institutions for December by 16.5-17% or UAH 2,406 - 2,286 to UAH 11,152.8-12,180 per thousand cubic meters (all prices include value added tax (VAT)) depending on consumption and payment terms.

This follows from the pricelist provided by Naftogaz, Ukrainian News Agency reports.

The Naftogaz's gas price for industrial consumers using over 50,000 cubic meters of the fuel a month is set at UAH 11,152.8 per thousand cubic meters (if paid in advance and in absence of gas arrears), and at UAH 12,180 per thousand cubic meters (if paid on delivery).

According to the report, the said prices will be available for the contracts signed before October 1, 2018.

In compliance with the Naftogaz's pricelist, there are also four other categories of consumers: the ones consuming less than 50,000 cubic meters; suppliers of state budget- and local budget-financed gas for its further sale to institutions and organizations, as well as to industrial consumers; 100-percent subsidiary of the Naftogaz of Ukraine national joint-stock company; and gas distribution stations operators.

The price for the first two categories of consumers is also set at UAH 12,180 per thousand cubic meters, the third category will receive gas at UAH 11,152.8 per thousand cubic meters, and the fourth one at UAH 12,180 per thousand cubic meters.

As Ukrainian News Agency earlier reported, Naftogaz decided to shift to a new model of gas pricing for industrial consumers.

The Naftogaz Trading gas distribution company LLC has signed the first natural gas purchase and sale agreements and supplied the fuel.

Price making envisions an opportunity to alter gas price several times a day in compliance with price changes on the European market and hryvnia exchange rate fluctuations.

Naftogaz intends to shift to a new model of gas price making for industrial consumers.

The National Commission for State Regulation of Energy and Public Utility Services (Energy Commission) has licensed the Naftogaz Teplo and Naftogaz Trading limited liability companies to perform business operations involving supply of natural gas.

According to the state register of legal entities, both companies were registered in August 2018. Their founder is the Gas Ukraine Company and the ultimate beneficial owner is the Naftogaz of Ukraine national joint stock company.

The Energy Commission licensed the Naftogaz of Ukraine Gas Supply Company to supply natural gas in July 2017.

The Naftogaz of Ukraine national energy group’s net profit increased by UAH 21.6 billion or 2.2-fold to UAH 39.449 billion in 2017, compared with 2016 (according to adjusted data, the group made a profit of UAH 17.849 billion in 2016).

The group’s sales revenue increased by 18% or UAH 34.714 billion to UAH 227.478 billion in 2017.

In particular, the group reported revenues of UAH 73.9 billion from transit of natural gas, UAH 18.1 billion from the sale of petroleum products, UAH 12.9 billion from the sale of oil and gas condensate, UAH 27.7 billion from domestic transportation of natural gas, UAH 54.3 billion from gas sales to households, UAH 22.8 billion from gas supplies to households, and UAH 3.6 billion from transit of crude oil.

The Energy Commission performs state regulation of natural monopolies in the electricity, district heating, oil & gas, and centralized water and wastewater industries. It also implements price and tariff policy in these industries.