Naftogaz to offer industrial consumers to buy gas with 25% advance payments from Jan 1 – top manager
NJSC Naftogaz Ukrainy from January 1, 2020 will offer a service of selling natural gas with 25% advance payment, Head of Naftogaz integrated gas business unit Andriy Favorov has said.
"By the way, I am ready to announce it now. From January 1, we will change the payment terms for the gas sold. Our product, which we put up for sale and is in demand, is sold with 100% prepayment. Now we will move away from it and make 25% of prepayment," he said in an exclusive interview with Interfax-Ukraine.
"That is, if a company participates in tenders, the price is fixed, and 25% of the prepayment of the nominal volume is paid, and the rest is paid upon the fact of its consumption. We want to give all other market players the opportunity of working in line with transparent rules with the most creditworthy counterparty in the country," Favorov said.
According to him, next year, Naftogaz also plans to come up with a proposal to buy gas from Ukrainian producers with a fixed price for 12 months.
"Any supplier will have the opportunity of selling gas to us at a price fixed for 12 months. This product is in demand on the market. If you look at the situation from the point of view of a private gas producer, it has the same problem as ours – seasonality, with a plunge in consumption in summer. You have to pay the royalty, pay under the investment program, but you do not have enough money, because nobody needs this gas for two quarters, therefore Naftogaz will take a leading position in this direction. We will show the price at which we are ready to buy and sell through the exchange during fair, clear, transparent bidding," he said.