Trading results on CE "Ukrainian Energy Exchange"

Today, the Ukrainian Energy Exchange is the market leader in exchange trading in Ukraine and the only centralized platform in the country where the highest liquidity and trade in all types of energy resources is concentrated. More than 800 companies trade on the Exchange, 250 of which trade in natural gas section.

Last month was exceptionally favourable for natural gas trading on the Ukrainian Energy Exchange. Almost 75 million cubic meters of the resource were put up for trading, from which 63% is realized. In July, 24 trading sessions were held on gas sales, a record high since May 2018.

The focus was on the August resource trades - 66% of the starting and sold volumes. 34% of natural gas sold comes from the July resource. There were also proposals for the sale of the UGS resource and the December resource, but there was no demand for these resources. It should be noted that the sales volume of the July resource is higher than the starting, because at the trading session on July 10, the demand for commodity put up by PPC was so large that the company added another 1 mcm to the already put up 1 mcm, and sold the entire volume of the July resource at a price of 5563.60 UAH (192 EUR) per thousand cubic meters, VAT included.

Naftogaz Trading showed positive dynamics. Since July 5, the company has sold 100% of the July volume and 99% of August. This is the best sales performance among other initiators of natural gas trading sessions. Well-chosen pricing strategy of the company plays an important role here, as trading usually goes with an increase in the starting price, as the market requires.

Thus, in July Naftogaz Trading sold 12.3 mcm of July resource and 13.2 mcm of August resource. August for the company started at least productively: Naftogaz Trading sold another 8 mcm of natural gas. Also at the trades on August 2, after a long break, trader Kraft Energy managed to sell 400 thousand cubic meters of August resource.

Over a period of month, during trading sessions, there was a general trend of raising prices from the minimum starting price. The weighted average prices by trading results varied from 5000 to 6300 UAH per thousand cubic meters but in general, the price of the July and August resource fluctuated around 5500 UAH (188 EUR) per thousand cubic meters. Only in the middle of the month, price fluctuations were observed due to unjustified expectations of gas supply interruptions to Europe. At the end of July the average weighted prices of July and August resources by results of all previously concluded exchange deals amounted to 5756.54 UAH (198,50 EUR) per thousand cubic meters and 5584,25 UAH (192,56 EUR) per thousand cubic meters respectively.

Since July 1, a wholesale electricity market has been launched in Ukraine. The first trades for the sale of electricity under bilateral contracts for the smooth start-up of the new model of the market took place on June 27. Currently, 157 participants are accredited on the "Electric Power" direction. Exchange trading take place within two trading zones – IPS of Ukraine and the Burstin Power Island.

During the first month of the new electricity market operation at the Ukrainian Energy Exchange, 557325 MWh of peak load electricity and 662485 MWh of off-pick electricity were sold at the trades. Electricity volumes on these trades are not subject to PSO. The total cost of electricity not subject to PSO sold in July is over 1.6 billion UAH (55 MEUR).

During the month, 10.8 thousand tons of liquefied gas with a total value of over 170 million UAH (5.86 MEUR) were sold at the Ukrainian Energy Exchange. There is a pronounced tendency to decrease in price, which is the result of the Ukrainian market oversaturation with this type of fuel.

In July, 375 tons of A-95 gasoline and 75 tons of A-92 gasoline were sold at the exchange trades, not including the volume of trades using differentials. Deliveries are subject to EXW, in accordance with Incoterms rules.

The total cost of gasoline sold is over 13.5 million UAH (466 thousand EUR). The downward trend is also observed in the price dynamics. There was no significant reduction in deliveries from Russia expected in early summer. The market is oversaturated, so the price falls.

Ukrainian mining companies sell oil at the Ukrainian Energy Exchange. Recently, one of them, Ukrnafta, which had previously successfully sold natural gas on the Exchange, entered to trade oil. Thus, now all of Ukraine’s largest mining companies are represented at CE "Ukrainian Energy Exchange".


For more information about trading results, see the section "Exchange Quotations".

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