Gas price: Ukraine and Europe. Market overview


Over the past week, natural gas prices in Ukraine reached new records, following the trends of European hubs.

Ukrainian Energy Exchange

Last week, trade in the resource of November 2021, December 2021, January 2022 continued. In total, positions for the purchase and sale of natural gas were formed by 10 companies: GSC Naftogaz Trading, Ukrspirt, Ukravtogaz, CGSC, Kraft Energy, Rozhnyativnafta, Ukrenergoexport, AGT, Ukrpostach Energo, Promenergo Dnipro.


Starting resource prices rose during the week. As a result, as of Friday, the average starting price of the resource in November was 2.59% higher than on Monday. The starting prices of the resource in December tended to decrease at the end of the week due to the formation of some low values in buying positions.

Selling and buying positions were sold during the last week. In total of 22,950.00 thousand cubic meters of natural gas were sold. Positions on the resource in November and December were paid on a postpayed basis. Thus, the last quoted price of the resource in November in the GTS of Ukraine on a postpaid basis was UAH 32,935.43 (November 23), in December - UAH 34,104 (24.11).

On the short-term UEEX natural gas market, participants formed bids in all market segments, in the GTS and UGS.

In total of 22 agreements in the amount of 1,049,000 cubic meters were concluded. No significant price fluctuations were recorded on the short-term market during the week. As of Thursday, the quoted price for Within-Day was UAH 33,500.00.

European market

Artificial restrictions on gas markets negatively affected the price situation last week. In the terms of record prices, European companies are not increasing imports, but are using fuel bought at a lower price earlier, and hope that in the second half of the heating season, gas prices will fall and possibly launch Nord Stream-2.

Active gas withdrawal in the EU in general and in Germany in particular is due to partial cooling. On the other hand, gas imports are lower than a year ago. For example, on November 23, gas supplies to EU countries amounted to 370 million cubic meters. Another 24 million cubic meters were taken from Gazprom’s five storage facilities in Germany, the Netherlands and Austria, where the company stores gas. Obviously, selection from UGS is more economically feasible than spot purchase. Exchange gas prices in Europe continue to remain at over $ 1,000 per thousand cubic meters.

Prices of contracts with delivery in due time, EUR / MWh, November 25, 2021

InstrumentTHECEGHTTFTGE/POLPXCEEGEX/HUDEXAverage weighted price
Day192,893,1592,2894,1890,9592,67
M+193,5692,5493,3794,8490,3292,93
Q+191,4991,8191,1493,4892,0992,00
S+146,8846,745,2947,2545,6546,35

Contracts for the month ahead, at all analyzed hubs had a different trend in spot prices - an increase of 0.27% on average. Quarterly prices were lower than spot prices by an average of 0.71%. Prices are season ahead with an average value of 46.35 EUR / MWh tended to decrease compared to spot on average by 49.98%.


The third week, oil prices rose on the grounds of concern about the growing number of COVID-19 infections in Europe and the impact on demand of quarantine restrictions taken in some countries, which have led to lower prices. The possibility of new restrictions in more countries may continue to affect the evolution of demand and prices for Brent oil in the near future. The trend deepened on Friday, November 26, when world prices for Brent crude oil fell by 4.9% to $ 78.15 per barrel due to news about a new strain of coronavirus and manipulation of news about the sale of reserves.

Gas balance in Ukraine

Imports of natural gas from the European direction during the week amounted to 0.30 million cubic meters, all from Hungary. Export deliveries increased during the week and as of November 24, 2021 amounted to 17.10 million cubic meters. The volume of domestic production averaged about 54.63 million cubic meters per day. During the week, an increase in natural gas consumption was recorded, the figure as of November 24, 2021 amounted to 118.05 million cubic meters. As of November 24, 2021, 16.63 billion cubic meters of natural gas were stored in Ukraine, which is 0.6 billion cubic meters less than last week. Withdrawal from underground storage facilities increased every day, as of November 24, 2021, the volume amounted to 80.14 million cubic meters.


Public procurement

Last week, 12 tender procedures were held for the purchase of natural gas by budgetary institutions and state-owned enterprises. In total, 1,382,447.00 cubic meters were sold from the largest tenders (top 10) of natural gas in the amount of UAH 43,801,070.80. The largest contract was awarded to UKR GAS RESOURCE, which will supply 750,000.00 cubic meters of natural gas to KYIV METROPOLITAN at the starting price of UAH 32.20 / cubic meter. The average price increased to UAH 32.04 per cubic meter. Prices ranged from UAH 30.00 to UAH 34.91 per cubic meter.


Interesting for the week

Moldova has paid its debt to Russia for gas. Earlier, the representative of Gazprom Sergii Kupriyanov warned that in case of non-payment, supplies will be suspended. "JSC "Moldovagaz" transferred to Gazprom payment for natural gas consumed in October and the first half of November this year" - the press service of the Moldovian company said. The amount of unpaid supplies of Russian gas for 1.5 months amounted to 74 million dollars. Moldovagaz was forced to turn to the government for help. On Thursday, the Moldovian parliament amended the budget and approved the urgent allocation of funds due to the threat of suspension of supplies.
The United States on Monday announced a decision to impose additional sanctions on the Nord Stream-2 gas pipeline. This is stated in a statement by Secretary of State Anthony Blinken, released by the State Department on November 22, according to "European Truth". Blinken said that the State Department had submitted a report to the US Congress sanctions list including two ships and the Russian-related company Transadria Ltd. involved in the project. The report is submitted in accordance with the European Energy Security Protection Act 2019 (PEESA).