Naftogaz to offer at least 15% of produced gas at exchange
NJSC Naftogaz Ukrainy came up with an initiative to put up for sale on commodity exchanges at least 15% of produced gas, the company submitted such a proposal on voluntary commitments to the Antimonopoly Committee of Ukraine (AMCU) for consideration during the procedure for obtaining permission to purchase Nadra Yuzivska LLC.
"According to European practice, even if 10% of produced resources is sold on the exchange, this allows ensuring an adequate level of competition in the market. We have offered increased obligations of 15% of our own production resources," Naftogaz CEO Andriy Kobolev said.
According to the press release, the calculation of 15% of the volumes is carried out without taking into account gas resources sold under public special obligations (PSO) in pursuance of Article 11 of the law on the natural gas market. The AMCU approved the proposals of Naftogaz, therefore, after the completion of the concentration process, the company will start selling its share of gas without fail even before the start of hydrocarbon production on Yuzivska deposit, the company specified.
It is explained that such an initiative is an effective lever for leveling potential risks to competition in the event that Naftogaz significantly increases gas production after the start of development of the new field.