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Naftogaz Expects Gas Price Of USD 200-210/1,000 Cubic Meters In 1Q2017 Under Contract With Gazprom

The Naftogaz of Ukraine national joint stock company expects that the calculated price of natural gas under the contract with Gazprom of 2009 for the first quarter of 2017 will make USD 200-210 per 1,000 cubic meters.

Yurii Vitrenko, chief commercial director at Naftogaz, wrote this on his page in Facebook, Ukrainian News Agency reports.

"Firstly, the price Gazprom's natural gas at present is not USD 140-150 as Yulia Tymoshenko says. It is USD 178-183. In the first quarter of 2017 it will be USD 200-210," he wrote.

Yurii Vitrenko also wrote that the price of natural gas in Europe were not stable.

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In August and September they were essential supplies at prices lower than the price from Gazprom. Then, the autumn in Europe was colder than usually and the European prices became higher than the prices from Gazprom, but the difference was relatively small.

"By the way, the natural gas prices are falling in the European markets at present and the price in Slovakia today was lower than the expected price from Gazprom in the first quarter 2017," he noted.

He notes that Naftogaz of Ukraine cannot buy natural gas from Gazprom without signing an addendum to the existing contract or a trilateral agreement with the European Union and Russia.

"Otherwise there will be a risk that our payments for natural gas (and a payment cannot be lower than USD 600 million) will be calculated as payments on the commitment 'take or pay' or this gas will be supplied to the occupied territories," he noted.

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On December 5, Naftogaz Chief Executive Officer Andrii Kobolev said Naftogaz of Ukraine was still at point to resume purchases of natural gas from Russia's gas monopoly Gazprom sobeit the RF company quotes a fair price and signs an addendum to the existing contract fixing payment and delivery terms and conditions.

As Ukrainian News Agency earlier reported, the Naftogaz of Ukraine national joint stock company has not been purchasing natural gas from Gazprom since 25 November 2015.

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