13:10 04.04.2017

Court bans Ukrtransgaz from limiting gas transportation for Odesa port-side plant

1 min read
Court bans Ukrtransgaz from limiting gas transportation for Odesa port-side plant

The Pechersky District Court of Kyiv by its ruling of March 28 has temporarily banned PJSC Ukrtransgaz from limiting or suspending gas transportation for PJSC Odesa port-side chemical plant.

The court also banned the company from rejecting nominations for entry and exit points of the plant, which are submitted under the contract for tolling processing of raw materials from ERU Management Services.

Ukrtransgaz can contest the ruling.

As reported, after two unsuccessful attempts to privatize Odesa port-side chemical plant in 2016, the company due to high prices for natural gas and accumulated debts for its supplies suspended activities for the first two months of 2017.

In March the plant started to operate under a give-and-take scheme with ERU group of companies, which committed to supply up to 60 million cubic meters of gas per month to it for processing and sell received ammonia and carbamide in external and internal markets.

ERU also undertook to issue more than $20 million under loan support agreements to resume the plant's operations by financing gas supplies in March.

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