16:38 13.09.2021

Naftogaz considering possibility of concluding contracts with regional gas suppliers to provide them with process gas – Vitrenko

2 min read
Naftogaz considering possibility of concluding contracts with regional gas suppliers to provide them with process gas – Vitrenko

 NJSC Naftogaz Ukrainy is considering the possibility of concluding long-term contracts with operators of gas distribution systems (regional gas suppliers) to cover their gas needs for production and technological costs outlays, head of the company Yuriy Vitrenko told reporters.

"We are considering the possibility of concluding long-term contracts with operators of gas distribution networks to cover their gas needs for production and technological outlays," the Naftogaz head said.

"We are considering long-term contracts that could cover their needs in a sustainable market way, because these are elements of critical infrastructure. We understand that we cannot deliver the gas we produce to people without gas distribution system operators," Vitrenko said.

Earlier, the head of the GTS Operator of Ukraine (GTSOU), Serhiy Makogon, told Interfax-Ukraine that Naftogaz could partially provide regional gas suppliers with domestically produced gas to prevent a sharp increase in distribution tariffs and the final price of gas for the population.

Makogon said that that if we keep the gas price in the gas suppliers' tariff for distribution at the level of UAH 7 per cubic meter, then the regional gas supplying companies will not be able to buy and provide themselves with the necessary volume of gas, and they will take it from the trunk pipelines of the GTSOU.

At the same time, he recalled that Naftogaz sells most of its gas at prices below the current market to thermal generating companies, and also sells it for the needs of households, "therefore, there will not be enough domestic gas for everyone."

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