Naftogaz to sign framework contract to supply gas for UAH 85 bln with Naftogaz Trading
National joint-stock company Naftogaz Ukrainy will sign a framework contract on the sale and purchase of natural gas for UAH 85 billion with its subsidiary Naftogaz Trading gas supply company LLC.
According to a report of the company in the information disclosure system of the National Commission for Securities and the Stock Market, the decision to approve the addendum to the framework contract, increasing the sum of the contract to the amount of UAH 85 billion, was approved by the supervisory board of the group on October 23 and October 24.
As reported, late August 2018, Naftogaz Ukrainy created two gas supplying subsidiaries - Naftogaz Teplo (Heat) LLC and Naftogaz Trading LLC, which in September received gas supply licenses.
Since October 2018, in relation to the introduction of the new model for selling gas, gas is sold to industrial enterprises via Naftogaz Trading, and Naftogaz sell gas only under long-term contracts.
The pricing of Naftogaz Trading foresees a possibility of changing the cost of gas several times a day, depending on the price fluctuations on the European market and the hryvnia exchange rate changes.
Naftogaz Trading on October 12, 2018 signed first sale and purchase contracts under the new model and delivered all gas under all new contracts.
Naftogaz Ukrainy unites the largest oil and gas producing enterprises in the country. The holding is a monopolist for transit and storage of natural gas in underground storage facilities, as well as for oil transportation through the country.