14:39 01.01.2020

Basis for calculating tariffs between Naftogaz, Gazprom are tariffs approved by Ukrainian regulator – Naftogaz head

3 min read
Basis for calculating tariffs between Naftogaz, Gazprom are tariffs approved by Ukrainian regulator – Naftogaz head

The basis for calculating tariffs by NJSC Naftogaz Ukrainy and Russia's Gazprom are the tariffs approved by the Ukrainian regulator on December 24 for Gas Transmission System Operator of Ukraine LLC (GTSOU) for gas transmission services for entry and exit points of the pipeline network for 2020-2024, Naftogaz CEO Andriy Kobolev said at a press conference in Kyiv on Tuesday.

"The tariffs between Gazprom and Naftogaz were calculated as the tariffs of the Ukrainian regulator, to which a small margin is added. The basis for this calculation was primarily the tariffs calculated in Ukraine," he said.

The head of Naftogaz also said that he could not announce the tariff rate outlined in the contract between Naftogaz and Gazprom because of the condition of confidentiality, but it almost did not change in accordance with the current year (in October 2019, Naftogaz predicted that the transit tariff for the Russian gas in 2019 will be $2.61 per 1,000 cubic meters per 100 km).

"For Gazprom, the tariff [for transit] almost does not change for guaranteed volumes. It will be higher for the volumes that they will order in addition to this," he said.

Kobolev added that the minimum transit volumes fixed in the contract with Gazprom in the amount of 225 billion cubic meters for five years and the approved tariffs make the activities of the gas transmission system of Ukraine viable in the time horizon of 2020-2024.

The head of Naftogaz also said that the degree to which Gazprom guaranteed the pumping of gas volumes approved in the contract was "high and better than in the previous contract."

Earlier, on December 24, the National Commission of Ukraine for Energy, Housing and Utilities Services Regulation (NCER) approved the tariffs of GTSOU for gas transmission services for entry and exit points of the pipeline network for 2020-2024.

In particular, for entry points (actually for imports to Ukraine) from the countries of Western Europe, the tariff will decrease by 29.1%, from $6.28 to $4.45 per 1,000 cubic meters a day, from the Russian Federation (for transit and import to Ukraine) it will increase 2.5 times, from $6.28 to $16.01 per 1,000 cubic meters a day.

For exit points (transit, hypothetical exports from Ukraine) to the countries of Western Europe, the tariff will decrease. In particular, towards Poland it will fall by 27.6%, to $9.04 per 1,000 cubic meters a day, Slovakia – by 44.8%, to $9.68 per 1,000 cubic meters a day, Hungary – by 45.1%, to $9.25 per 1,000 cubic meters a day, the Turkish direction (Orlivka/Isaccea) – by 91.8%, to $1.13 per 1,000 cubic meters a day.

At the same time, despite the tariffs set by the regulator since 2016 in accordance with the European methodology for the entry and exit points of the Ukrainian gas transportation system, they were not applied to gas transit under a contract between Naftogaz and PJSC Gazprom signed in 2009.

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