Naftogaz of Ukraine initiates natural gas purchases at Ukrainian Energy Exchange

On October 23, LLC "Gas Supply Company Naftogaz of Ukraine" (GSC Naftogaz of Ukraine), a member of NAK Naftogaz of Ukraine Group, initiated the purchase of gas through the electronic platform of the https://www.ueex.com.ua/eng/ (UEEX) for the first time. The company supplies natural gas to private consumers, as well as to small and medium businesses. The entry of a new company of the Naftogaz Group into exchange trading will increase the transparency of gas market price formation and increase the volume of gas exchange trading in Ukraine.

GSC Naftogaz of Ukraine has already held three trading sessions on gas purchase at the UEEX. As of October 25, 2019, the company had purchased more than 12 million cubic meters of natural gas. Most of these volumes are the resource of November or gas in UGS facilities with its transfer in November.

The fact that Naftogaz of Ukraine entered the electronic exchange platform was commented by Oleksandr Kovalenko, CEO of the Ukrainian Energy Exchange: "Entry of the company from the Naftogaz Group as a buyer to the Exchange will lead to an increase in activity in the Ukrainian gas market, will enable domestic gas producing companies to sell gas at market prices to the largest player in the sector, it creates conditions for greater transparency, competitiveness and market predictability, and has a positive impact on the availability of gas for the end consumers. Prices emerging at the exchange trading are important reference points for the Ukrainian gas market".

It is expected that the participation of the GSC Naftogaz of Ukraine in the exchange trading will contribute to a significant increase in liquidity.

Natural gas trading on the UEEX has been conducted for more than two years, with more than 270 companies taking part in it. In order to participate in trading, the interested parties must undergo the KYC procedure, as well as obtain accreditation at the Exchange.