Naftogaz Increases Natural Gas Price For Heating 3-Fold

Within the framework of three-year agreements, the Naftogaz Trading natural gas supply company LLC plans to increase natural gas prices for thermal utilities more than three times to UAH 29,392 per 1,000 cubic meters (including VAT, taking into account the tariff for transportation services and the coefficient that is used when ordering capacity for the day ahead).

This is stated in the letter of the company, the text of which Ukrainian News Agency obtained.

Naftogaz Trading considered the appeal of the Ministry of Energy regarding the price of natural gas, taking into account the validity of long-term contracts concluded between the company and heat supply enterprises for the formation of natural gas volumes for the heating season 2022-2023.

According to the document, under the terms of three-year contracts, the following prices are set for thermal utilities:

- for the period from June 1, 2022 to May 31, 2023 (with a fixed volume) - UAH 24,356.38 excluding VAT per 1,000 cubic meters, while the price, taking into account the tariff for transportation services and the coefficient that is used when ordering capacity for the day ahead, will be UAH 29,391.55 per 1,000 cubic meters with VAT;

- for June 2022 (without a fixed volume) - UAH 24,434.67 excluding VAT per 1,000 cubic meters, while the price, taking into account the tariff for transportation services and the coefficient that is used when ordering capacity for the day ahead, will be UAH 29,485.5 per 1,000 cubic meters with VAT;

- for the period from June 1, 2022 to December 31, 2022 (with a fixed volume) - UAH 13,658.42 excluding VAT per 1,000 cubic meters, while the price, taking into account the tariff for transportation services and the coefficient that is used when ordering capacity for the day ahead, will be UAH 16,554 per 1,000 cubic meters with VAT.

According to the document, additional agreements to three-year agreements regarding the determination of ordered volumes for the period from June 1, 2022 to May 31, 2023 will be sent to counterparties after their approval with the Cabinet of Ministers.

As Ukrainian News Agency earlier reported, Naftogaz Trading called on thermal utilities to conclude contracts with it for the supply of natural gas for three years.

At the same time, the price for the first year was UAH 7.42 per cubic meter (from June 1, 2021 to May 31, 2022, including VAT, excluding the tariff of the operator of the gas transmission system).

For the second and third year of natural gas supply, the fixed price will be determined in May 2022 and May 2023, and the price change will occur in accordance with the indexation of the change in quotations at the European NCG hub and the exchange rate.