13:17 04.12.2014

Naftogaz proposes forming reserve gas stock in underground storage facilities by all market players

2 min read
Naftogaz proposes forming reserve gas stock in underground storage facilities by all market players

National joint-stock company Naftogaz Ukrainy believes that it is discriminative that only the holding is to create the reserve gas stock in underground storage facilities and the holding has purposed that each market player forms the reserve stock.

"Naftogaz Ukrainy has the status of guaranteed supplier of gas for all categories, which means the necessity of investing of the large amount of working capital in the creation of the reserve gas stock in underground storage facilities to ensure security of supplies," reads a report of the holding, referring to a letter sent to the Secretariat of the Energy Community and gas market players.

"As a result, state holding Naftogaz has a gap, which is covered by the borrowed or shareholder capital," the holding said.

The holding said that private suppliers are in the preferential conditions.

"Private sellers of natural gas, on the contrary, have a chance to sell their gas only to industrial consumers on the market conditions. Private companies also have a chance to get advance payments for gas, halt supplies to debtors and not to sign new contracts if there is a lack of resources and when the price situation is unfavorable," reads the report.

"The goal of Naftogaz Ukrainy is market and non-discriminative conditions for all market players and provision of high-quality services at the competitive price for end consumers. Naftogaz Ukrainy said that its top-priority is the creation of the effective and open gas market in Ukraine with the establishment of fair conditions for all suppliers and consumers of natural gas," reads the report.

Naftogaz Ukrainy unites oil and gas production assets in Ukraine, and is the country's gas transit, underground gas storage, and oil pipeline transportation monopoly.

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