01 June 2021, Tuesday, 18:00 167

Naftogaz Prepares 3-Year Contract For Supply Of Gas To Heat Producers

Редактор: Daria Zubkova

The Naftogaz of Ukraine national joint stock company has prepared a three-year contract for supply of natural gas to heat producers.

Naftogaz of Ukraine announced this in a statement, the Ukrainian News Agency reports.

According to the statement, the long-term market price will be UAH 7.42 per cubic meter (including VAT but excluding the gas transmission system operator’s tariff) for a period of 13 months beginning from June 2021.

The price for thermal utilities will be indexed in subsequent periods (from July 1, 2022, and from July 1, 2023).

"Under the contract, the long-term market price applies only to a volume of natural gas corresponding to the volumes that thermal utilities have historically used for production of heat and hot water directly for the needs of the population. Additional volumes of gas will be supplied to thermal utilities at spot prices," the statement said.

According to the statement, 34 major thermal utilities, including thermal utilities in Kyiv and Kharkiv, have already concluded contracts for commercial gas purchases with LLC Naftogaz Trading Gas Supply Company.

As Ukrainian News Agency earlier reported, Zhytomyr’s Mayor Serhii Sukhomlyn has said that Naftogaz of Ukraine is offering to supply natural gas to thermal utilities at the price of UAH 7,400 per thousand cubic meters.

The Cabinet of Ministers decided on May 19 not to extend the provision that imposes the public service obligation to supply natural gas to thermal utilities on Naftogaz of Ukraine after May 20.

Naftogaz of Ukraine’s Communications Director Maksym Biliavskyi has said that cancelation of on Naftogaz of Ukraine’s public service obligation (PSO) to supply natural gas to thermal utilities will not cause special problems for participants on the gas market.