Naftogaz starts purchasing gas from private gas production companies on stock exchange

On April 26, the Ukrainian Energy Exchange (UEE) held the first auctions for the purchase of natural gas from national gas production by the Naftogaz of Ukraine national joint-stock company.

This follows from a statement by the UEE, the Ukrainian News agency reports.

"The company put up two starting positions for the auction - from the purchase of the April resource from USF and the May resource from the Ukrainian GTS. The starting prices were UAH 10,972 and UAH 10,791, respectively (less VAT, post-payment). A total of 14 participants took part in the auction," the message says.

According to the report, Naftogaz purchased 1.5 million cubic meters of gas from the May resource in the GTS at a weighted average price of UAH 10,767 (less VAT), 100,000 cubic meters of gas resource in the USF in April at a weighted average price of UAH 10,972 (less VAT) and concluded 16 agreements.

"Since 2019, the companies of the Naftogaz group have made an important contribution to the formation of a competitive natural gas exchange market of Ukraine. Now, after a short break, we welcome Naftogaz's decision to return to stock exchange trading. The restoration of the company's presence at the auction has a great positive impact on the development of the market in general, strengthening liquidity, but, first of all, now this is an extremely important step to support the Ukrainian market and national gas production," commented Oleksii Dubovskyi, the head of the UEE Exchange Committee.

As the Ukrainian News agency earlier reported, in April, Naftogaz registered on the platform of joint gas purchases of the European Union.

In August 2022, the Cabinet of Ministers obliged the Naftogaz of Ukraine national joint-stock company to buy gas from domestic private gas production companies.